4 unchanged sentences
We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as “Centennial” or the “Bank”).
−Removed: As of June 30, 2022, we had, on a consolidated basis, total assets of $24.25 billion, loans receivable, net of allowance for credit losses of $13.63 billion, total deposits of $19.58 billion, and stockholders’ equity of $3.50 billion.
+Added: As of September 30, 2022, we had, on a consolidated basis, total assets of $23.16 billion, loans receivable, net of allowance for credit losses of $13.54 billion, total deposits of $18.54 billion, and stockholders’ equity of $3.46 billion.
We generate most of our revenue from interest on loans and investments, service charges, and mortgage banking income.
−Removed: Deposits and Federal Home Loan Bank (“FHLB”) and other borrowed funds are our primary source of funding.
+Added: Deposits and Federal Home Loan Bank (“FHLB”) and other borrowed funds are our primary sources of funding.
Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment.
3 unchanged sentences
Key Financial Measures
−Removed: As of or for the Three Months Ended June 30, As of or for the Six Months Ended June 30,
+Added: As of or for the Three Months Ended September 30, As of or for the Nine Months Ended September 30,
2022 2021 2022 2021
19 unchanged sentences
(2) See Table 23 for the non-GAAP tabular reconciliation.
−Removed: Results of Operations for the Three Months Ended June 30, 2022 and 2021
−Removed: Our net income decreased $63.1 million, or 79.8%, to $16.0 million for the three-month period ended June 30, 2022, from $79.1 million for the same period in 2021.
−Removed: On a diluted earnings per share basis, our earnings were $0.08 per share for the three-month period ended June 30, 2022 compared to $0.48 per share for the three-month period ended June 30, 2021.
−Removed: During the second quarter of 2022, we completed the previously announced acquisition of Happy Bancshares, Inc.
−Removed: As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $48.7 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities.
−Removed: The summation of these items reduced earnings by $107.3 million and earnings per share by $0.39 per share for the three-month period ended June 30, 2022.
−Removed: The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest.
−Removed: However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022.
−Removed: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.
−Removed: During the three months ended June 30, 2022, the Company recorded $1.4 million in special dividend from equity investments, $2.4 million in recoveries on historic losses, $1.8 million loss for the decrease in the fair value of marketable securities and $2.1 million in trust preferred securities ("TRUPS") redemption fees.
+Added: Results of Operations for the Three Months Ended September 30, 2022 and 2021
+Added: Our net income increased $33.7 million, or 45.0%, to $108.7 million for the three-month period ended September 30, 2022, from $75.0 million for the same period in 2021.
+Added: On a diluted earnings per share basis, our earnings were $0.53 per share for the three-month period ended September 30, 2022 compared to $0.46 per share for the three-month period ended September 30, 2021.
+Added: The Company determined that a provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2022.
+Added: In addition, the Company determined that a provision for unfunded commitments was not necessary as of September 30, 2022.
+Added: During the three months ended September 30, 2022, the Company recorded $1.1 million in recoveries on historic losses and a $2.6 million loss for the decrease in the fair value of marketable securities .
Total interest income increased by $85.9 million, or 54.7%, and non-interest income increased by $14.0 million, or 47.9%.
−Removed: This was more than offset by a $5.0 million, or 38.0%, increase in total interest expense and a $92.5 million, or 126.7%, increase in non-interest expense.
−Removed: The increase in interest income was due to a $40.1 million, or 28.3%, increase in loan interest income, a $16.6 million, or 137.1%, increase in investment income and a $5.9 million, or 828.6%, increase in interest income on deposits at other banks.
−Removed: The increase in non-interest income was primarily due to a $5.0 million, or 97.1%, increase in service charges on deposit accounts, a $4.6 million, or 152.6%, increase in other income, a $3.9 million, or 873.0%, increase in trust fees, a $2.9 million, or 29.8%, increase in other services charges and fees and $1.3 million, or 49.1%, increase in dividends from FHLB, FRB, FNBB and other which was partially offset by a $3.1 million, or 244.1%, decrease in the fair value adjustment for marketable securities resulting from a $1.8 million loss for the decrease in the fair value of marketable securities, and a $1.1 million, or 100.0%, decrease in gain on sale of SBA loans.
−Removed: Included within other income was $2.4 million in recoveries on historic losses, and included within dividends from FHLB, FRB, FNBB and other was $1.4 million in special dividends.
−Removed: The increase in interest expense was primarily due to a $4.3 million, or 66.8%, increase in interest on deposits and a $649,000, or 13.5%, increase in interest on subordinated debentures as a result of the acquisition of $140.0 million of subordinated debt and $23.2 million in trust preferred securities from Happy during the quarter.
−Removed: The increase in non-interest expense was due to $48.7 million in merger and acquisition expenses, a $23.3 million, or 55.0%, increase in salaries and employee benefits, an $11.0 million, or 70.7%, increase in other operating expenses, a $5.2 million, or 57.7%, increase in occupancy and equipment and a $4.2 million, or 71.3%, increase in data processing expense.
−Removed: Included within other operating expense was $2.1 million in TRUPS redemption fees.
−Removed: Income tax expense decreased by $21.8 million, or 86.9%, during the quarter due to a decrease in net income.
−Removed: These fluctuations are primarily due to the acquisition of Happy during the quarter and the rising rate environment.
−Removed: Our net interest margin increased from 3.61% for the three-month period ended June 30, 2021 to 3.64% for the three-month period ended June 30, 2022.
−Removed: The yield on interest earning assets was 3.97% and 3.94% for the three months ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.89 billion to $22.18 billion.
−Removed: The increase in average earning assets is primarily due to a $3.30 billion increase in average loans receivable, a $2.31 billion increase in average investment securities, and $675.6 million increase in average interest-bearing balances due from banks due to the acquisition of Happy during the quarter.
−Removed: For the three months ended June 30, 2022 and 2021, we recognized $5.2 million and $5.8 million, respectively, in total net accretion for acquired loans and deposits.
−Removed: The reduction in accretion was dilutive to the net interest margin by one basis point.
−Removed: We recognized $1.4 million in event interest income for the three months ended June 30, 2022 compared to $942,000 for the three months ended June 30, 2021.
−Removed: This increased the net interest margin by one basis point.
−Removed: Our efficiency ratio was 66.31% for the three months ended June 30, 2022, compared to 41.09% for the same period in 2021.
−Removed: For the second quarter of 2022, our efficiency ratio, as adjusted (non-GAAP), was 46.02%, compared to 42.07% reported for the second quarter of 2021.
+Added: This was partially offset by a $17.4 million, or 139.8%, increase in total interest expense and a $38.7 million, or 51.2%, increase in non-interest expense.
+Added: These fluctuations are primarily due to the acquisition of Happy Bancshares, Inc.
+Added: ("Happy"),which we completed on April 1, 2022, and the rising rate environment.
+Added: The increase in interest income resulted from a $53.2 million, or 37.3%, increase in loan interest income, a $23.0 million, or 172.6%, increase in investment income and a $9.6 million, or 863.6%, increase in interest income on deposits at other banks.
+Added: The increase in non-interest income was primarily due to a $5.9 million, or 73.3%, increase in other services charges and fees, a $5.2 million, or 119.5%, increase in other income, a $4.8 million, or 81.0%, increase in service charges on deposit accounts, and a $3.5 million, or 730.9%, increase in trust fees.
+Added: These increases were partially offset by a $2.7 million, or 4,408.2%, decrease in the fair value adjustment for marketable securities resulting from a $2.6 million decrease in the fair value of marketable securities, a $1.8 million, or 29.7%, decrease in mortgage lending income and a $920,000, or 34.6%, decrease in dividends from FHLB, FRB, FNBB and other.
+Added: Included within other income was $1.1 million in recoveries on historic losses.
+Added: The increase in interest expense was primarily due to a $17.7 million, or 313.8%, increase in interest on deposits which was partially offset by a $635,000, or 13.3%, decrease in interest on subordinated debentures.
+Added: The increase in non-interest expense was due to a $22.8 million, or 53.7%, increase in salaries and employee benefits, an $8.4 million, or 49.7%, increase in other operating expenses, a $5.8 million, or 62.6%, increase in occupancy and equipment and a $2.7 million, or 45.2%, increase in data processing expense, partially offset by a decrease of $1.0 million in merger and acquisition expenses.
+Added: Income tax expense increased by $10.0 million, or 43.3%, during the quarter due to an increase in net income.
+Added: Our net interest margin increased from 3.60% for the three-month period ended September 30, 2021 to 4.05% for the three-month period ended September 30, 2022.
+Added: The yield on interest earning assets was 4.62% and 3.91% for the three months ended September 30, 2022 and 2021, respectively, as average interest earning assets increased from $16.11 billion to $21.09 billion.
+Added: The increase in average interest earning assets is primarily due to a $3.78 billion increase in average loans receivable and a $2.15 billion increase in average investment securities, largely resulting from the acquisition of Happy, partially offset by a $949.6 million decrease in average interest-bearing balances due from banks.
+Added: For the three months ended September 30, 2022 and 2021, we recognized $4.6 million and $4.9 million, respectively, in total net accretion for acquired loans and deposits.
+Added: We recognized $943,000 in event interest income for the three months ended September 30, 2022 compared to $3.5 million for the three months ended September 30, 2021 which reduced the net interest margin by five basis points.
+Added: Our efficiency ratio was 43.24% for the three months ended September 30, 2022, compared to 42.26% for the same period in 2021.
+Added: For the third quarter of 2022, our efficiency ratio, as adjusted (non-GAAP), was 42.97%, compared to 42.29% reported for the third quarter of 2021.
(See Table 23 for the non-GAAP tabular reconciliation).
−Removed: Our annualized return on average assets was 0.26% for the three months ended June 30, 2022, compared to 1.81% for the same period in 2021.
−Removed: Our annualized return on average assets, as adjusted (non-GAAP), was 1.57% for the three months ended June 30, 2022, compared to 1.75% for the same period in 2021.
+Added: Our annualized return on average assets was 1.81% for the three months ended September 30, 2022, compared to 1.68% for the same period in 2021.
+Added: Our annualized return on average assets, as adjusted (non-GAAP), was 1.83% for the three months ended September 30, 2022, compared to 1.67% for the same period in 2021.
(See Table 20 for the non-GAAP tabular reconciliation).
−Removed: Our annualized return on average common equity was 1.78% and 11.92% for the three months ended June 30, 2022, and 2021, respectively.
−Removed: Our annualized return on average common equity, as adjusted (non-GAAP), was 10.83% for the three months ended June 30, 2022 and 11.54% for the same period in 2021.
+Added: Our annualized return on average common equity was 12.25% and 10.97% for the three months ended September 30, 2022, and 2021, respectively.
+Added: Our annualized return on average common equity, as adjusted (non-GAAP), was 12.39% for the three months ended September 30, 2022 and 10.87% for the same period in 2021.
(See Table 21 for the non-GAAP tabular reconciliation).
−Removed: Results of Operations for the Six Months Ended June 30, 2022 and 2021
−Removed: Our net income decreased $89.8 million, or 52.6%, to $80.9 million for the six-month period ended June 30, 2022, from $170.7 million for the same period in 2021.
−Removed: On a diluted earnings per share basis, our earnings were $0.44 per share for the six-month period ended June 30, 2022 compared to $1.03 per share for the six-month period ended June 30, 2021.
−Removed: As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $49.6 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities.
−Removed: The summation of these items reduced earnings by $108.2 million and earnings per share by $0.44 per share for the six-month period ended June 30, 2022.
−Removed: The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest.
−Removed: However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022.
−Removed: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.
−Removed: During the six months ended June 30, 2022, the Company recorded a $324,000 adjustment for the increase in fair value of marketable securities, $1.4 million special dividend from equity investments, $2.1 million in TRUPS redemption fees and a $5.6 million recovery on historic losses.
−Removed: Total interest income increased by $44.8 million, or 14.1%.
−Removed: This was more than offset by a $1.1 million, or 1.5%, decrease in non-interest income, a $4.2 million, or 15.2%, increase in interest expense and a $96.5 million, or 66.2%, increase in non-interest expense.
−Removed: The increase in interest income was due to an $18.6 million, or 6.4%, increase in loan interest income, a $19.0 million, or 81.3%, increase in investment income and a $7.1 million, or 637.5%, increase in interest income on deposits at other banks.
−Removed: The decrease in non-interest income was primarily due to a $6.7 million, or 95.4%, decrease in income for the fair value adjustment for marketable securities resulting from a $324,000 increase in the fair value of marketable securities for the six months ended June 30, 2022 compared to a $7.0 million increase for the six months ended June 30, 2021, a $6.6 million, or 58.7%, decrease in dividends from FHLB, FRB, FNBB and other, a $4.5 million, or 31.0%, decrease in mortgage lending income, which was partially offset by a $6.1 million, or 60.3%, increase in service charges on deposit accounts, a $4.6 million, or 41.3%, increase in other income, a $3.9 million, or 406.6%, increase in trust fees and a $3.0 million, or 17.4%, increase in other service charges and fees.
+Added: Results of Operations for the Nine Months Ended September 30, 2022 and 2021
+Added: Our net income decreased $56.1 million, or 22.8%, to $189.6 million for the nine-month period ended September 30, 2022, from $245.7 million for the same period in 2021.
+Added: On a diluted earnings per share basis, our earnings were $0.99 per share for the nine-month period ended September 30, 2022 compared to $1.49 per share for the nine-month period ended September 30, 2021.
+Added: As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $49.6 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, and a $2.0 million provision for credit losses on acquired held-to-maturity investment securities.
+Added: The summation of these items reduced earnings by $108.2 million and earnings per share by $0.42 per share for the nine-month period ended September 30, 2022.
+Added: Excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2022.
+Added: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of September 30, 2022.
+Added: During the nine months ended September 30, 2022, the Company recorded $6.7 million in recoveries on historic losses and a $1.4 million special dividend from equity investments which were partially offset by a $2.3 million loss for the decrease in fair value of marketable securities and $2.1 million in TRUPS redemption fees.
+Added: Total interest income increased by $130.7 million, or 27.6%, and non-interest income increased by $12.8 million, or 12.2%.
+Added: This was more than offset by a $135.3 million, or 61.1%, increase in non-interest expense and a $21.6 million, or 53.7%, increase in interest expense.
+Added: These fluctuations are primarily due to the acquisition of Happy during the second quarter of 2022 and the rising rate environment.
+Added: The increase in interest income resulted from a $71.9 million, or 16.5%, increase in loan interest income, a $42.0 million, or 114.4%, increase in investment income and a $16.8 million, or 750.5%, increase in interest income on deposits at other banks.
+Added: The increase in non-interest income was primarily due to a $10.9 million, or 68.0%, increase in service charges on deposit accounts, a $9.7 million, or 63.3%, increase in other income, an $8.9 million, or 35.2%, increase in other service charges and fees, a $7.4 million, or 514.1%, increase in trust fees and a $1.2 million, or 75.8%, increase in the cash value of life insurance.
+Added: These increases were partially offset by a $9.4 million, or 132.5%, decrease in income for the fair value adjustment for marketable securities resulting from a $2.3 million decrease in the fair value of marketable securities for the nine months ended September 30, 2022 compared to a $7.0 million increase for the nine months ended September 30, 2021, a $7.5 million, or 54.1%, decrease in dividends from FHLB, FRB, FNBB and other, a $6.2 million, or 30.6%, decrease in mortgage lending income and a $1.4 million, or 90.4%, decrease in the gain on sale of SBA loans.
Included within other income was $6.7 million recovery on historic losses, and included within dividends from FHLB, FRB, FNBB and other was $1.4 million in special dividends.
−Removed: The increase in interest expense was primarily due to a $2.7 million, or 28.5%, increase in interest on subordinated debentures as a result of the acquisition of $140.0 million of subordinated debt and $23.2 million in trust preferred securities from Happy during the second quarter, and a $1.5 million, or 10.5%, increase in interest on deposits.
−Removed: The increase in non-interest expense was due to $49.6 million in merger and acquisition expenses, a $24.8 million, or 29.4%, increase in salaries and employee benefits, an $11.6 million, or 37.1%, increase in other operating expenses, a $5.4 million, or 45.7%, increase in data processing expense and a $5.1 million, or 28.0% increase in occupancy and equipment.
+Added: The increase in non-interest expense was due to $48.6 million in merger and acquisition expenses, a $47.6 million, or 37.5%, increase in salaries and employee benefits, a $20.0 million, or 41.5%, increase in other operating expenses, a $10.9 million, or 39.7% increase in occupancy and equipment and an $8.1 million, or 45.5%, increase in data processing expense.
Included within other operating expense was $2.1 million in TRUPS redemption fees.
−Removed: Income tax expense decreased by $30.6 million, or 56.8%, during the quarter due to a decrease in net income.
−Removed: These fluctuations are primarily due to the acquisition of Happy during the second quarter of 2022 and the rising rate environment.
−Removed: Our net interest margin decreased from 3.81% for the six-month period ended June 30, 2021 to 3.46% for the six-month period ended June 30, 2022.
−Removed: The yield on interest earning assets was 3.79% and 4.17% for the six-month period ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.51 billion to $19.49 billion.
−Removed: The increase in average earning assets is primarily the result of a $1.59 billion increase in average investment securities, a $1.28 billion increase in average interest-bearing balances due from banks and a $1.12 billion increase in average loans receivable.
−Removed: For the six months ended June 30, 2022 and 2021, we recognized $8.3 million and $11.3 million, respectively, in total net accretion for acquired loans and deposits.
+Added: The increase in interest expense was primarily due to a $19.2 million, or 97.0%, increase in interest on deposits and a $2.1 million, or 14.6%, increase in interest on subordinated debentures as a result of the acquisition of $140.0 million of subordinated debt and $23.2 million in trust preferred securities from Happy during the second quarter.
+Added: Income tax expense decreased by $20.6 million, or 26.7%, during the quarter due to the decrease in net income.
+Added: Our net interest margin decreased from 3.74% for the nine-month period ended September 30, 2021 to 3.67% for the nine-month period ended September 30, 2022.
+Added: The yield on interest earning assets was 4.08% for the nine-month periods ended September 30, 2022 and 2021, as average interest earning assets increased from $15.71 billion to $20.03 billion.
+Added: The increase in average earning assets is primarily the result of a $2.01 billion increase in average loans receivable, a $1.78 billion increase in average investment securities, and a $527.4 million increase in average interest-bearing balances due from banks.
+Added: For the nine months ended September 30, 2022 and 2021, we recognized $12.8 million and $16.2 million, respectively, in total net accretion for acquired loans and deposits.
The reduction in accretion was dilutive to the net interest margin by 2 basis points.
−Removed: The Company experienced an $18.8 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven.
+Added: The Company experienced a $26.5 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven.
This was dilutive to the net interest margin by approximately 8 basis points.
−Removed: Our efficiency ratio was 58.26% for the six-month period ended June 30, 2022, compared to 38.72% for the same period in 2021.
−Removed: For the first six months of 2022, our efficiency ratio, as adjusted (non-GAAP), was 46.53%, compared to 41.36% reported for the first six months of 2021.
+Added: Our efficiency ratio was 52.44% for the nine-month period ended September 30, 2022, compared to 39.86% for the same period in 2021.
+Added: For the first nine months of 2022, our efficiency ratio, as adjusted (non-GAAP), was 45.13%, compared to 41.67% reported for the first nine months of 2021.
(See Table 23 for the non-GAAP tabular reconciliation).
−Removed: Our annualized return on average assets was 0.75% for the six-month period ended June 30, 2022, compared to 2.01% for the same period in 2021.
−Removed: Our annualized return on average assets, as adjusted (non-GAAP), was 1.48% for the six months ended June 30, 2022, compared to 1.81% for the same period in 2021.
+Added: Our annualized return on average assets was 1.13% for the nine-month period ended September 30, 2022, compared to 1.90% for the same period in 2021.
+Added: Our annualized return on average assets, as adjusted (non-GAAP), was 1.61% for the nine months ended September 30, 2022, compared to 1.76% for the same period in 2021.
(See Table 20 for the non-GAAP tabular reconciliation).
−Removed: Our annualized return on average common equity was 5.14% and 13.02% for the six-month period ended June 30, 2022, and 2021, respectively.
−Removed: Our annualized return on average common equity, as adjusted (non-GAAP), was 10.08% for the six months ended June 30, 2022 and 11.74% for the same period in 2021.
+Added: Our annualized return on average common equity was 7.71% and 12.32% for the nine-month period ended September 30, 2022, and 2021, respectively.
+Added: Our annualized return on average common equity, as adjusted (non-GAAP), was 10.91% for the nine months ended September 30, 2022 and 11.44% for the same period in 2021.
(See Table 21 for the non-GAAP tabular reconciliation).
−Removed: Financial Condition as of and for the Period Ended June 30, 2022 and December 31, 2021
−Removed: Our total assets as of June 30, 2022 increased $6.20 billion to $24.25 billion from the $18.05 billion reported as of December 31, 2021.
+Added: Financial Condition as of and for the Period Ended September 30, 2022 and December 31, 2021
+Added: Our total assets as of September 30, 2022 increased $5.11 billion to $23.16 billion from $18.05 billion reported as of December 31, 2021.
The increase in total assets is primarily due to the acquisition of $6.69 billion in total assets, net of purchase accounting adjustments, from Happy during the second quarter of 2022.
−Removed: Cash and cash equivalents decreased $833.9 million, for the six months ended June 30, 2022.
−Removed: Our loan portfolio balance increased to $13.92 billion as of June 30, 2022 from $9.84 billion at December 31, 2021.
+Added: Cash and cash equivalents decreased $2.07 billion, for the nine months ended September 30, 2022.
+Added: Our loan portfolio balance increased to $13.83 billion as of September 30, 2022 from $9.84 billion at December 31, 2021.
The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $98.4 million in organic loan growth.
−Removed: Total deposits increased $5.32 billion to $19.58 billion as of June 30, 2022 from $14.26 billion as of December 31, 2021.
+Added: Total deposits increased $4.28 billion to $18.54 billion as of September 30, 2022 from $14.26 billion as of December 31, 2021.
The increase in deposits was primarily due to the acquisition of $5.86 billion in deposits, net of purchase accounting adjustments, from Happy in the second quarter of 2022.
−Removed: Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021.
−Removed: The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022.
−Removed: Our non-performing loans were $60.6 million, or 0.44% of total loans as of June 30, 2022, compared to $50.2 million, or 0.51% of total loans as of December 31, 2021.
−Removed: The allowance for credit losses as a percentage of non-performing loans increased to 485.57% as of June 30, 2022, from 471.61% as of December 31, 2021.
−Removed: Non-performing loans from our Arkansas franchise were $15.0 million at June 30, 2022 compared to $13.9 million as of December 31, 2021.
−Removed: Non-performing loans from our Florida franchise were $33.3 million at June 30, 2022 compared to $26.8 million as of December 31, 2021.
−Removed: Non-performing loans from our Texas franchise were $5.5 million at June 30, 2022 compared to zero as of December 31, 2021.
−Removed: Non-performing loans from our Alabama franchise were $813,000 at June 30, 2022 compared to $470,000 as of December 31, 2021.
−Removed: Non-performing loans from our Shore Premier Finance ("SPF") franchise were $1.3 million at June 30, 2022 compared to $1.5 million as of December 31, 2021.
−Removed: Non-performing loans from our Centennial Commercial Finance Group (“CFG”) franchise were $4.7 million at June 30, 2022 compared to $7.5 million as of December 31, 2021.
−Removed: As of June 30, 2022, our non-performing assets increased to $61.1 million, or 0.25% of total assets, from $51.8 million, or 0.29% of total assets, as of December 31, 2021.
−Removed: Non-performing assets from our Arkansas franchise were $15.0 million at June 30, 2022 compared to $14.4 million as of December 31, 2021.
−Removed: Non-performing assets from our Florida franchise were $33.6 million at June 30, 2022 compared to $27.9 million as of December 31, 2021.
−Removed: Non-performing assets from our Texas franchise were $5.7 million at June 30, 2022 compared to zero as of December 31, 2021.
−Removed: Non-performing assets from our Alabama franchise were $813,000 at June 30, 2022 compared to $470,000 as of December 31, 2021.
−Removed: Non-performing assets from our SPF franchise were $1.3 million at June 30, 2022 compared to $1.5 million as of December 31, 2021.
−Removed: Non-performing assets from our CFG franchise were $4.7 million at June 30, 2022 compared to $7.5 million as of December 31, 2021.
−Removed: The $4.7 million balance of non-accrual loans for our Centennial CFG market consists of one loan that is assessed for credit risk by the Federal Reserve under the Shared National Credit Program.
−Removed: The decision to place this loan on non-accrual status was made by the Federal Reserve and not the Company.
−Removed: The loan that makes up the total balance is still current on both principal and interest.
−Removed: However, all interest payments are currently being applied to the principal balance.
−Removed: Because the Federal Reserve required us to place this loan on non-accrual status, we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.
+Added: Stockholders’ equity increased $694.3 million to $3.46 billion as of September 30, 2022, compared to $2.77 billion as of December 31, 2021.
+Added: The $694.3 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $189.6 million in net income for the nine months ended September 30, 2022, partially offset by the $317.9 million in other comprehensive loss, the $94.8 million of shareholder dividends paid and stock repurchases of $50.9 million in 2022.
+Added: Our non-performing loans were $61.7 million, or 0.45% of total loans as of September 30, 2022, compared to $50.2 million, or 0.51% of total loans as of December 31, 2021.
+Added: The allowance for credit losses as a percentage of non-performing loans decreased slightly to 468.77% as of September 30, 2022, from 471.61% as of December 31, 2021.
+Added: Non-performing loans from our Arkansas franchise were $10.2 million at September 30, 2022 compared to $13.9 million as of December 31, 2021.
+Added: Non-performing loans from our Florida franchise were $24.8 million at September 30, 2022 compared to $26.8 million as of December 31, 2021.
+Added: Non-performing loans from our Texas franchise were $13.7 million at September 30, 2022 compared to zero as of December 31, 2021.
+Added: Non-performing loans from our Alabama franchise were $204,000 at September 30, 2022 compared to $470,000 as of December 31, 2021.
+Added: Non-performing loans from our Shore Premier Finance ("SPF") franchise were $1.4 million at September 30, 2022 compared to $1.5 million as of December 31, 2021.
+Added: Non-performing loans from our Centennial Commercial Finance Group (“CFG”) franchise were $11.4 million at September 30, 2022 compared to $7.5 million as of December 31, 2021.
+Added: As of September 30, 2022, our non-performing assets increased to $62.2 million, or 0.27% of total assets, from $51.8 million, or 0.29% of total assets, as of December 31, 2021.
+Added: Non-performing assets from our Arkansas franchise were $10.2 million at September 30, 2022 compared to $14.4 million as of December 31, 2021.
+Added: Non-performing assets from our Florida franchise were $25.0 million at September 30, 2022 compared to $27.9 million as of December 31, 2021.
+Added: Non-performing assets from our Texas franchise were $14.0 million at September 30, 2022 compared to zero as of December 31, 2021.
+Added: Non-performing assets from our Alabama franchise were $204,000 at September 30, 2022 compared to $470,000 as of December 31, 2021.
+Added: Non-performing assets from our SPF franchise were $1.4 million at September 30, 2022 compared to $1.5 million as of December 31, 2021.
+Added: Non-performing assets from our CFG franchise were $11.4 million at September 30, 2022 compared to $7.5 million as of December 31, 2021.
+Added: The $11.4 million balance of non-accrual loans for our Centennial CFG market consists of two loans that are assessed for credit risk by the Federal Reserve under the Shared National Credit Program.
+Added: Due to the condition of the two loans, partial charge-offs for a total of $2.2 million were taken on these loans during the third quarter of 2022.
+Added: The loans are not current on either principal or interest, and we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.
+Added: Any interest payments that are received will be applied to the principal balance.
Critical Accounting Policies and Estimates
16 unchanged sentences
Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.
−Removed: Interchange fees were $6.5 million, $10.5 million, $4.3 million and $8.1 million for the three and six months ended June 30, 2022 and 2021, respectively.
−Removed: Centennial CFG loan fees were $3.3 million, $5.1 million, $3.3 million and $5.3 million and for the three and six months ended June 30, 2022 and 2021, respectively.
+Added: Interchange fees were $6.1 million, $16.6 million, $4.2 million and $12.2 million for the three and nine months ended September 30, 2022 and 2021, respectively.
+Added: Centennial CFG loan fees were $4.6 million, $9.7 million, $1.8 million and $7.1 million for the three and nine months ended September 30, 2022 and 2021, respectively.
+Added: • Trust fees - The Company enters into contracts with its customers to manage assets for investment, and/or transact on their accounts.
+Added: The Company generally satisfies its performance obligations as services are rendered.
+Added: The management fees are percentage based, flat, percentage of income or a fixed percentage calculated upon the average balance of assets depending upon account type.
+Added: Fees are collected on a monthly or annual basis.
Investments – Available-for-sale.
27 unchanged sentences
Historical credit loss experience provides the basis for the estimation of expected credit losses.
−Removed: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.
+Added: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, housing price indices and rental vacancy rate index.
The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics.
92 unchanged sentences
On February 4, 2022, the Company completed the purchase of the performing marine loan portfolio of Utah-based LendingClub Bank (“LendingClub”).
−Removed: Under the terms of the purchase agreement with LendingClub, the Company acquired yacht loans totaling approximately $242.2 million.
+Added: Under the terms of the purchase agreement with LendingClub, the Company acquired approximately $242.2 million of yacht loans.
This portfolio of loans is housed within the Company's Shore Premier Finance division, which is responsible for servicing the acquired loan portfolio and originating new loan production.
10 unchanged sentences
As opportunities arise, we will continue to open new (commonly referred to as de novo ) branches in our current markets and in other attractive market areas.
−Removed: As of June 30, 2022, we had 222 branch locations.
+Added: As of September 30, 2022, we had 222 branch locations.
There were 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, five branches in Alabama and one branch in New York City.
Results of Operations
−Removed: For the three and six months ended June 30, 2022 and 2021
−Removed: Our net income decreased $63.1 million, or 79.8%, to $16.0 million for the three-month period ended June 30, 2022, from $79.1 million for the same period in 2021.
−Removed: On a diluted earnings per share basis, our earnings were $0.08 per share for the three-month period ended June 30, 2022 compared to $0.48 per share for the three-month period ended June 30, 2021.
−Removed: During the second quarter of 2022, we completed the previously announced acquisition of Happy Bancshares, Inc.
−Removed: As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $48.7 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities.
−Removed: The summation of these items reduced earnings by $107.3 million and earnings per share by $0.39 per share for the three-month period ended June 30, 2022.
−Removed: The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest.
−Removed: However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022.
−Removed: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.
−Removed: During the three months ended June 30, 2022, the Company recorded $1.4 million in special dividend from equity investments, $2.4 million in recoveries on historic losses, $1.8 million loss for the decrease in the fair value of marketable securities and $2.1 million in TRUPS redemption fees.
−Removed: Our net income decreased $89.8 million, or 52.6%, to $80.9 million for the six-month period ended June 30, 2022, from $170.7 million for the same period in 2021.
−Removed: On a diluted earnings per share basis, our earnings were $0.44 per share for the six-month period ended June 30, 2022 compared to $1.03 per share for the six-month period ended June 30, 2021.
+Added: For the three and nine months ended September 30, 2022 and 2021
+Added: Our net income increased $33.7 million, or 45.0%, to $108.7 million for the three-month period ended September 30, 2022, from $75.0 million for the same period in 2021.
+Added: On a diluted earnings per share basis, our earnings were $0.53 per share for the three-month period ended September 30, 2022 compared to $0.46 per share for the three-month period ended September 30, 2021.
+Added: The Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2022.
+Added: In addition, the Company determined no additional provision for unfunded commitments was necessary as of September 30, 2022.
+Added: During the three months ended September 30, 2022, the Company recorded $1.1 million in recoveries on historic losses and a $2.6 million loss for the decrease in the fair value of marketable securities .
+Added: Our net income decreased $56.1 million, or 22.8%, to $189.6 million for the nine-month period ended September 30, 2022, from $245.7 million for the same period in 2021.
+Added: On a diluted earnings per share basis, our earnings were $0.99 per share for the nine-month period ended September 30, 2022 compared to $1.49 per share for the nine-month period ended September 30, 2021.
As a result of the acquisition of Happy, which we completed on April 1, 2022, we incurred $49.6 million in merger expenses and recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count," an $11.4 million provision for credit losses on acquired unfunded commitments, a $2.0 million provision for credit losses on acquired held-to-maturity investment securities.
−Removed: The summation of these items reduced earnings by $108.2 million and earnings per share by $0.44 per share for the six-month period ended June 30, 2022.
−Removed: The markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest.
−Removed: However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022.
−Removed: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.
−Removed: During the six months ended June 30, 2022, the Company recorded a $324,000 adjustment for the increase in fair value of marketable securities, $1.4 million special dividend from equity investments, $2.1 million in TRUPS redemption fees and a $5.6 million recovery on historic losses.
+Added: The summation of these items reduced earnings by $108.2 million and earnings per share by $0.42 per share for the nine-month period ended September 30, 2022.
+Added: Excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary, as the current level of the allowance for credit losses was considered adequate as of September 30, 2022.
+Added: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of September 30, 2022.
+Added: During the nine months ended September 30, 2022, the Company recorded $6.7 million in recoveries on historic losses and a $1.4 million special dividend from equity investments, which were partially offset by a $2.3 million loss for the decrease in fair value of marketable securities and $2.1 million in TRUPS redemption fees.
Net Interest Income
9 unchanged sentences
On June 15, 2022, the target rate was increased to 1.50% to 1.75%.
−Removed: Presently, the Federal Reserve has indicated they are anticipating multiple rate increases for 2022.
−Removed: Our net interest margin increased from 3.61% for the three-month period ended June 30, 2021 to 3.64% for the three-month period ended June 30, 2022.
−Removed: The yield on interest earning assets was 3.97% and 3.94% for the three months ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.89 billion to $22.18 billion.
−Removed: The increase in average earning assets is primarily due to a $3.30 billion increase in average loans receivable, a $2.31 billion increase in average investment securities, and $675.6 million increase in average interest-bearing balances due from banks due to the acquisition of Happy during the quarter.
−Removed: For the three months ended June 30, 2022 and 2021, we recognized $5.2 million and $5.8 million, respectively, in total net accretion for acquired loans and deposits.
−Removed: The reduction in accretion was dilutive to the net interest margin by one basis point.
−Removed: We recognized $1.4 million in event interest income for the three months ended June 30, 2022 compared to $942,000 for the three months ended June 30, 2021.
−Removed: This increased the net interest margin by one basis point.
−Removed: Our net interest margin decreased from 3.81% for the six-month period ended June 30, 2021 to 3.46% for the six-month period ended June 30, 2022.
−Removed: The yield on interest earning assets was 3.79% and 4.17% for the six-month period ended June 30, 2022 and 2021, respectively, as average interest earning assets increased from $15.51 billion to $19.49 billion.
−Removed: The increase in average earning assets is primarily the result of a $1.59 billion increase in average investment securities, a $1.28 billion increase in average interest-bearing balances due from banks and a $1.12 billion increase in average loans receivable.
−Removed: For the six months ended June 30, 2022 and 2021, we recognized $8.3 million and $11.3 million, respectively, in total net accretion for acquired loans and deposits.
+Added: On July 27, 2022, the target rate was increased to 2.25% to 2.50%.
+Added: On September 21, 2022, the target rate was increased to 3.00% to 3.25%.
+Added: Presently, the Federal Reserve has indicated they are anticipating further rate increases.
+Added: Our net interest margin increased from 3.60% for the three-month period ended September 30, 2021 to 4.05% for the three-month period ended September 30, 2022.
+Added: The yield on interest earning assets was 4.62% and 3.91% for the three months ended September 30, 2022 and 2021, respectively, as average interest earning assets increased from $16.11 billion to $21.09 billion.
+Added: The increase in average earning assets is primarily due to a $3.78 billion increase in average loans receivable, and a $2.15 billion increase in average investment securities largely resulting from the acquisition of Happy, partially offset by a $949.6 million decrease in average interest-bearing balances due from banks.
+Added: For the three months ended September 30, 2022 and 2021, we recognized $4.6 million and $4.9 million, respectively, in total net accretion for acquired loans and deposits.
+Added: We recognized $943,000 in event interest income for the three months ended September 30, 2022 compared to $3.5 million for the three months ended September 30, 2021, which reduced the net interest margin by five basis points.
+Added: Our net interest margin decreased from 3.74% for the nine-month period ended September 30, 2021 to 3.67% for the nine-month period ended September 30, 2022.
+Added: The yield on interest earning assets was 4.08% for both of the nine-month periods ended September 30, 2022 and 2021, as average interest earning assets increased from $15.71 billion to $20.03 billion.
+Added: The increase in average earning assets is primarily the result of a $2.01 billion increase in average loans receivable, a $1.78 billion increase in average investment securities, and a $527.4 million increase in average interest-bearing balances due from banks.
+Added: For the nine months ended September 30, 2022 and 2021, we recognized $12.8 million and $16.2 million, respectively, in total net accretion for acquired loans and deposits.
The reduction in accretion was dilutive to the net interest margin by 2 basis points.
−Removed: The Company experienced an $18.8 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven.
+Added: The Company experienced a $26.5 million reduction in interest income from PPP loans due to the forgiveness of the PPP loans and the acceleration of the deferred fees for the loans that were forgiven.
This was dilutive to the net interest margin by approximately 8 basis points.
−Removed: Net interest income on a fully taxable equivalent basis increased $58.2 million, or 40.7%, to $201.2 million for the three-month period ended June 30, 2022, from $143.0 million for the same period in 2021.
−Removed: This increase in net interest income for the three-month period ended June 30, 2022 was the result of a $63.2 million increase in interest income, partially offset by an $5.0 million increase in interest expense, on a fully taxable equivalent basis.
+Added: Net interest income on a fully taxable equivalent basis increased $69.2 million, or 47.3%, to $215.5 million for the three-month period ended September 30, 2022, from $146.4 million for the same period in 2021.
+Added: This increase in net interest income for the three-month period ended September 30, 2022 was the result of an $86.6 million increase in interest income, partially offset by a $17.4 million increase in interest expense, on a fully taxable equivalent basis.
The $86.6 million increase in interest income was primarily the result of the higher level of average interest earning assets due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment.
−Removed: The higher yield on earning assets resulted in an increase in interest income of approximately $6.9 million, and the increase in earning assets resulted in an increase in interest income of approximately $56.3 million.
+Added: The increase in earning assets resulted in an increase in interest income of approximately $65.5 million, and the higher yield on earning assets resulted in an increase in interest income of approximately $21.1 million.
The $17.4 million increase in interest expense is primarily the result of the higher level of average interest bearing liabilities due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment.
−Removed: The higher yield on interest bearing liabilities resulted in an increase in interest expense of approximately $548,000 and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $4.5 million.
−Removed: Net interest income on a fully taxable equivalent basis increased $41.2 million, or 14.1%, to $334.1 million for the six-month period ended June 30, 2022, from $292.9 million for the same period in 2021.
−Removed: This increase in net interest income for the six-month period ended June 30, 2022 was the result of a $45.4 million increase in interest income, partially offset by a $4.2 million increase in interest expense, on a fully taxable equivalent basis.
−Removed: The $45.4 million increase in interest income was primarily the result of the higher level of average interest earning assets due to the acquisition of Happy during the second quarter of 2022 partially offset by lower earning asset yields.
−Removed: The lower yield on earning assets resulted in a decrease in interest income of approximately $844,000, and the increase in earning assets resulted in an increase in interest income of approximately $46.2 million.
−Removed: The $4.2 million increase in interest expense is primarily the result of the higher level of average interest bearing liabilities due to the acquisition of Happy during the second quarter of 2022 partially offset by lower interest rates paid on interest-bearing liabilities.
−Removed: The lower yield on interest bearing liabilities resulted in an decrease in interest expense of approximately $2.8 million and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $7.0 million.
−Removed: Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and six months ended June 30, 2022 and 2021, as well as changes in fully taxable equivalent net interest margin for the three and six months ended June 30, 2022 compared to the same period in 2021.
+Added: The higher rates on interest bearing liabilities resulted in an increase in interest expense of approximately $14.7 million, and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $2.7 million.
+Added: Net interest income on a fully taxable equivalent basis increased $110.4 million, or 25.1%, to $549.7 million for the nine-month period ended September 30, 2022, from $439.3 million for the same period in 2021.
+Added: This increase in net interest income for the nine-month period ended September 30, 2022 was the result of a $132.0 million increase in interest income, partially offset by a $21.6 million increase in interest expense, on a fully taxable equivalent basis.
+Added: The $132.0 million increase in interest income was primarily the result of the higher level of average interest earning assets due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment.
+Added: The increase in earning assets resulted in an increase in interest income of approximately $110.8 million, and the higher yield on earning assets resulted in a increase in interest income of approximately $21.2 million.
+Added: The $21.6 million increase in interest expense is primarily the result of the higher level of average interest bearing liabilities due to the acquisition of Happy during the second quarter of 2022 and the increasing interest rate environment.
+Added: The higher rates on interest bearing liabilities resulted in an increase in interest expense of approximately $11.6 million, and the increase in interest bearing liabilities resulted in an increase in interest expense of approximately $10.0 million.
+Added: Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and nine months ended September 30, 2022 and 2021, as well as changes in fully taxable equivalent net interest margin for the three and nine months ended September 30, 2022 compared to the same period in 2021.
Analysis of Net Interest Income
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
10 unchanged sentences
Changes in Fully Taxable Equivalent Net Interest Margin
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2021 2022 vs.
1 unchanged sentence
Increase in interest income due to change in earning assets $ 65,504 $ 110,827
−Removed: Increase (decrease) increase in interest income due to change in earning asset yields 6,951 (844)
+Added: Increase in interest income due to change in earning asset yields 21,080 21,155
Increase in interest expense due to change in interest-bearing liabilities (2,742) (10,006)
−Removed: (Increase) decrease in interest expense due to change in interest rates paid on interest-bearing liabilities (548) 2,796
−Removed: Increase (decrease) increase in net interest income $ 58,203 $ 41,180
−Removed: Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and six months ended June 30, 2022 and 2021, respectively.
+Added: Increase in interest expense due to change in interest rates paid on interest-bearing liabilities (14,660) (11,614)
+Added: Increase in net interest income $ 69,182 $ 110,362
+Added: Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and nine months ended September 30, 2022 and 2021, respectively.
The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods.
2 unchanged sentences
Average Balance Sheets and Net Interest Income Analysis
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
Expense Yield /
30 unchanged sentences
Net interest income and margin $ 215,541 4.05 % $ 146,359 3.60 %
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Balance Income /
30 unchanged sentences
Net interest income and margin $ 549,656 3.67 % $ 439,294 3.74 %
−Removed: Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and six months ended June 30, 2022 compared to the same period in 2021, on a fully taxable basis.
+Added: Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and nine months ended September 30, 2022 compared to the same period in 2021, on a fully taxable basis.
The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates, in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.
Volume/Rate Analysis
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 over 2021 2022 over 2021
2 unchanged sentences
(In thousands)
−Removed: Increase (decrease) in:
+Added: (Decrease) increase in:
Interest income:
10 unchanged sentences
Securities sold under agreement to repurchase (14) 346 332 (73) 403 330
−Removed: FHLB borrowed funds — — — — — —
Subordinated debentures 819 (1,454) (635) 5,618 (3,519) 2,099
8 unchanged sentences
Historical credit loss experience provides the basis for the estimation of expected credit losses.
−Removed: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.
+Added: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, housing price indices and rental vacancy rate index.
Acquired loans .
18 unchanged sentences
For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan.
−Removed: During the three-month and six-month periods ended June 30, 2022, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments resulting from the acquisition of Happy on April 1, 2022.
−Removed: As of June 30, 2022, the markets in which we operate have been experiencing significant economic uncertainty primarily related to inflationary concerns, continuing supply chain issues and the potential impacts of international unrest.
−Removed: However, excluding the impact of the acquisition of Happy, the Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of June 30, 2022.
−Removed: In addition, excluding the impact of the acquisition of Happy, the Company determined no additional provision for unfunded commitments was necessary as of June 30, 2022.
−Removed: Net charge-offs to average total loans was 0.07% for the three months ended June 30, 2022 compared to 0.09% for the three months ended June 30, 2021.
−Removed: Net charge-offs to average total loans was 0.08% for the six months ended June 30, 2022 compared to 0.09% for the six months ended June 30, 2021.
+Added: As a result of the Happy acquisition which was completed on April 1, 2022, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments.
+Added: The Company determined that an additional provision for credit losses was not necessary as the current level of the allowance for credit losses was considered adequate as of September 30, 2022.
+Added: In addition, the Company determined no additional provision for unfunded commitments was necessary as of September 30, 2022.
+Added: Net charge-offs to average total loans was 0.15% for the three months ended September 30, 2022 compared to 0.07% for the three months ended September 30, 2021.
+Added: Net charge-offs to average total loans was 0.10% for the nine months ended September 30, 2022 compared to 0.09% for the nine months ended September 30, 2021.
Investments – Available-for-sale :
17 unchanged sentences
The remainder of investments classified as held-to-maturity are U.S.
−Removed: Treasury securities.
−Removed: Due to the inherent low risk in U.S.
−Removed: Treasury securities, no provision for credit loss was established on that portion of the portfolio.
−Removed: At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio resulting from the Happy acquisition was considered adequate.
+Added: government-sponsored enterprises and mortgage-backed securities all of which are guaranteed by the U.S.
+Added: Due to the inherent low risk in these U.S.
+Added: government guaranteed securities, no provision for credit loss was established on this portion of the portfolio.
+Added: At September 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio resulting from the Happy acquisition was considered adequate.
No additional provision for credit losses was considered necessary for the portfolio.
Non-Interest Income
−Removed: Total non-interest income was $44.6 million and $75.3 million for the three and six months ended June 30, 2022, compared to $31.1 million and $76.4 million for the same period in 2021.
+Added: Total non-interest income was $43.2 million and $118.5 million for the three and nine months ended September 30, 2022, compared to $29.2 million and $105.6 million for the same period in 2021.
Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending income, insurance commissions, increase in cash value of life insurance, fair value adjustment for marketable securities and dividends.
−Removed: Table 6 measures the various components of our non-interest income for the three and six months ended June 30, 2022 and 2021, respectively, as well as changes for the three and six months ended June 30, 2022 compared to the same period in 2021.
+Added: Table 6 measures the various components of our non-interest income for the three and nine months ended September 30, 2022 and 2021, respectively, as well as changes for the three and nine months ended September 30, 2022 compared to the same period in 2021.
Non-Interest Income
−Removed: Three Months Ended June 30, 2021 Change
−Removed: from 2020 Six Months Ended June 30, 2021 Change
+Added: Three Months Ended September 30, 2021 Change
+Added: from 2020 Nine Months Ended September 30, 2021 Change
2022 2021 2022 2021
8 unchanged sentences
Gain on sale of SBA loans 58 439 (381) (86.8) 153 1,588 (1,435) (90.4)
−Removed: Gain (loss) on sale of branches, equipment and other assets, net 2 (23) 25 108.7 18 (52) 70 134.6
+Added: (Loss) gain on sale of branches, equipment and other assets, net (13) (34) 21 61.8 5 (86) 91 105.8
Gain on OREO, net — 246 (246) (100.0) 487 1,266 (779) (61.5)
3 unchanged sentences
Total non-interest income $ 43,201 $ 29,209 $ 13,992 47.9 % $ 118,451 $ 105,605 $ 12,846 12.2 %
−Removed: Non-interest income increased $13.5 million, or 43.3%, to $44.6 million for the three months ended June 30, 2022 from $31.1 million for the same period in 2021.
−Removed: The primary factors that resulted in this increase were the increase in service charges on deposit account and the increase in other income.
−Removed: Other factors were changes related to other services charges and fees, trust fees, dividends from FHLB, FRB, FNBB and other, gain on sale of SBA loans, gain on OREO and fair value adjustment for marketable securities.
−Removed: Additional details for the three months ended June 30, 2022 on some of the more significant changes are as follows:
−Removed: • The $5.0 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees resulting from the acquisition of Happy.
−Removed: • The $2.9 million increase in other service charges and fees is primarily related to an increase in interchange fees resulting from the acquisition of Happy.
+Added: Non-interest income increased $14.0 million, or 47.9%, to $43.2 million for the three months ended September 30, 2022 from $29.2 million for the same period in 2021.
+Added: The primary factors that resulted in this increase were the increases in other service charges and fees, other income and service charges on deposit accounts.
+Added: Other factors were changes related to trust fees, mortgage lending income, increase in cash value of life insurance, dividends from FHLB, FRB, FNBB and other and fair value adjustment for marketable securities.
+Added: Additional details for the three months ended September 30, 2022 on some of the more significant changes are as follows:
+Added: • The $4.8 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees service charge fees related to the acquisition of Happy.
+Added: • The $5.9 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees and an increase in interchange fees related to the acquisition of Happy.
• The $3.5 million increase in trust fees is primarily related to an increase in trust fees resulting from the acquisition of Happy.
−Removed: • The $1.3 million increase for dividends from FHLB, FRB, FNBB & other is primarily due to an increase in special dividends from equity investments and an increase in FRB stock holdings related to the acquisition of Happy.
−Removed: • The $1.1 million decrease in gains on sales of SBA loans was due to no SBA loan sales taking place during the second quarter of 2022.
−Removed: • The $610,000 decrease in gains on OREO resulted from a reduction in the level of sales of OREO during 2022.
−Removed: • The $3.1 million decrease in the fair value adjustment for marketable securities is due to a reduction in the fair market values of marketable securities held by the Company.
−Removed: • The $4.6 million increase in other income is primarily due to a $2.8 million increase in additional income for items previously charged off, a $878,000 increase in investment brokerage fee income, a $260,000 increase in real estate rental income and a $492,000 increase in building rental income related to the acquisition of Happy.
−Removed: Non-interest income decreased $1.1 million, or 1.5%, to $75.3 million for the six months ended June 30, 2022 from $76.4 million for the same period in 2021.
−Removed: The primary factors that resulted in this decrease were the reduction in dividends from FHLB, FRB, FNBB & other, the reduction in fair value adjustment for marketable securities and the reduction in mortgage lending income which was partially offset by the increase in service charges on deposit accounts, increase in other income and increase in trust fees.
−Removed: Other factors were changes related to other service charges and fees and gain on sale of SBA loans.
−Removed: Additional details for the six months ended June 30, 2022 on some of the more significant changes are as follows:
−Removed: • The $6.1 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees resulting from the acquisition of Happy.
−Removed: • The $3.0 million increase in other service charges and fees is primarily related to an increase in interchange acquisition fees resulting from the acquisition of Happy.
−Removed: • The $3.9 million increase in trust fees is primarily related to an increase in employee and personal trust fees resulting from the acquisition of Happy.
+Added: • The $1.8 million decrease in mortgage lending income is primarily related to a decrease in volume of secondary market loans from the high volume of loans during 2021.
+Added: The decrease in volume is due to the increase in interest rates.
+Added: • The $580,000 increase in cash value of life insurance is primarily related to the increase in bank owned life insurance resulting from the acquisition of Happy.
+Added: • The $920,000 decrease for dividends from FHLB, FRB, FNBB & other is primarily due to a decrease in special dividends from equity investments, partially offset by an increase in dividend income from marketable securities and an increase in FRB stock holdings related to the acquisition of Happy.
+Added: • The $2.7 million decrease in the fair value adjustment for marketable securities is due to a reduction in the fair value of marketable securities held by the Company.
+Added: • The $5.2 million increase in other income is primarily due to a $3.3 million adjustment for equity method investments.
+Added: Other factors causing this increase were a $404,000 increase in additional income for items previously charged off, which includes the $1.1 million in recoveries on historic losses;
+Added: a $618,000 increase in investment brokerage fee income;
+Added: a $307,000 increase in real estate rental income and a $522,000 increase in building rental income related to the acquisition of Happy.
+Added: Non-interest income increased $12.8 million, or 12.2%, to $118.5 million for the nine months ended September 30, 2022 from $105.6 million for the same period in 2021.
+Added: The primary factors that resulted in this increase were the increase in service charges on deposit accounts and the increase in other income.
+Added: Other factors were changes related to service charges and fees, trust fees, mortgage lending income, increase in cash value of life insurance, dividends from FHLB, FRB, FNBB and other, gain on sale of SBA loans and fair value adjustment for marketable securities.
+Added: Additional details for the nine months ended September 30, 2022 on some of the more significant changes are as follows:
+Added: • The $10.9 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees and service charge fees resulting from the acquisition of Happy.
+Added: • The $8.9 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees and an increase in interchange acquisition fees resulting from the acquisition of Happy.
+Added: • The $7.4 million increase in trust fees is primarily related to an increase in trust fees resulting from the acquisition of Happy.
• The $6.2 million decrease in mortgage lending income is primarily due to a decrease in volume of secondary market loans from the high volume of loans during 2021.
+Added: The decrease in volume is due to the increase in interest rates.
+Added: • The $1.2 million increase in cash value of life insurance is primarily related to BOLI acquired in the acquisition of Happy.
• The $7.5 million decrease for dividends from FHLB, FRB, FNBB & other is primarily due to a decrease in special dividends from equity investments, partially offset by an increase in FRB stock holdings related to the acquisition of Happy.
1 unchanged sentence
• The $779,000 decrease in gains on OREO resulted from a reduction in the level of sales of OREO during 2022.
−Removed: • The $6.7 million decrease in the fair value adjustment for marketable securities is due to a reduction in the increase of the fair market values of marketable securities held by the Company.
−Removed: • The $4.6 million increase in other income is primarily due to a $2.8 million increase in additional income for items previously charged off and a $1.4 million increase in investment brokerage fee income related to the acquisition of Happy.
+Added: • The $9.4 million decrease in the fair value adjustment for marketable securities is due to a reduction in the fair value of marketable securities held by the Company.
+Added: • The $9.7 million increase in other income is primarily due to a $3.3 million adjustment for equity method investments and a $3.2 million increase in additional income for items previously charged off, which includes the $6.7 million recoveries on historic losses.
+Added: Other factors causing this increase were a $2.0 million increase in investment brokerage fee income, a $529,000 increase in real estate rental income and a $1.0 million increase in building rental income related to the acquisition of Happy.
Non-Interest Expense
Non-interest expense primarily consists of salaries and employee benefits, occupancy and equipment, data processing, and other expenses such as advertising, merger and acquisition expenses, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees and other professional fees.
−Removed: Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2022 and 2021, as well as changes for the three and six months ended June 30, 2022 compared to the same period in 2021.
+Added: Table 7 below sets forth a summary of non-interest expense for the three and nine months ended September 30, 2022 and 2021, as well as changes for the three and nine months ended September 30, 2022 compared to the same period in 2021.
Non-Interest Expense
−Removed: Three Months Ended June 30, 2022 Change
−Removed: from 2021 Six Months Ended June 30, 2022 Change
+Added: Three Months Ended September 30, 2022 Change
+Added: from 2021 Nine Months Ended September 30, 2022 Change
2022 2021 2022 2021
19 unchanged sentences
Total non-interest expense $ 114,346 $ 75,619 $ 38,727 51.2 % $ 356,724 $ 221,467 $ 135,257 61.1 %
−Removed: Non-interest expense increased $92.5 million, or 126.7%, to $165.5 million for the three months ended June 30, 2022 from $73.0 million for the same period in 2021.
−Removed: The primary factors that resulted in this increase were the changes related to salaries and employee benefits and merger and acquisition expense.
−Removed: Other factors were changes related to occupancy and equipment, data processing expense, amortization of intangibles, FDIC and state assessment fees and other expenses.
−Removed: Additional details for the three months ended June 30, 2022 on some of the more significant changes are as follows:
+Added: Non-interest expense increased $38.7 million, or 51.2%, to $114.3 million for the three months ended September 30, 2022 from $75.6 million for the same period in 2021.
+Added: The primary factors that resulted in this increase were the changes related to salaries and employee benefits.
+Added: Other factors were changes related to occupancy and equipment, data processing expense, merger and acquisition expenses, advertising expenses, amortization of intangibles, electronic banking expense and other expenses.
+Added: Additional details for the three months ended September 30, 2022 on some of the more significant changes are as follows:
• The $22.8 million increase in salaries and employee benefits expense is primarily due to increased salary expenses and insurance expenses related to the acquisition of Happy.
−Removed: • The $5.2 million increase in occupancy and equipment expenses is primarily due to increases in depreciation on buildings, machinery and equipment, increases in utility expenses and increases in property taxes related to the acquisition of Happy.
−Removed: • The $4.2 million increase in data processing expense is primarily due to increases in telecommunication fees, computer software fees, licensing fee and increases in internet banking and cash management expenses related to the acquisition of Happy.
−Removed: • The $48.7 increase in merger and acquisition expense is related to costs associated with the acquisition of Happy.
+Added: • The $5.8 million increase in occupancy and equipment expenses is primarily due to increases in depreciation on buildings, machinery and equipment;
+Added: utility expenses;
+Added: lease expense;
+Added: equipment maintenance and repairs;
+Added: janitorial expenses;
+Added: property taxes and other occupancy expenses related to the acquisition of Happy.
+Added: • The $2.7 million increase in data processing expense is primarily due to increases in telecommunication fees, depreciation of equipment and software, software maintenance and software licensing subscriptions related to the acquisition of Happy.
+Added: • The $1.0 million decrease in merger and acquisition expense is related to preliminary costs associated with the acquisition of Happy during 2021, and the merger expenses for the current year being recorded during the first and second quarters of 2022.
• The $820,000 increase in advertising expense is related to the acquisition of Happy.
• The $1.1 million increase in amortization of intangibles is due to the acquisition of Happy.
−Removed: • The $736,000 increase in electronic banking expense is due to increased debit card processing fees and interchange network expenses resulting from the acquisition of Happy.
−Removed: • The $1.3 million increase in FDIC and state assessment expense is primarily due to FDIC assessment reductions for 2021 and the acquisition of Happy during the second quarter of 2022.
−Removed: • The $5.5 million increase in other expenses is primarily related to the acquisition of Happy as well as $2.1 million in TRUPS redemption fees.
−Removed: Non-interest expense increased $96.5 million, or 66.2%, to $242.4 million for the three months ended June 30, 2022 from $145.8 million for the same period in 2021.
+Added: • The $1.3 million increase in electronic banking expense is due to increased debit card processing fees and interchange network expenses resulting from the acquisition of Happy.
+Added: • The $2.5 million increase in other expenses is primarily related to the acquisition of Happy.
+Added: Non-interest expense increased $135.3 million, or 61.1%, to $356.7 million for the three months ended September 30, 2022 from $221.5 million for the same period in 2021.
The primary factors that resulted in this increase were the changes related to salaries and employee benefits and merger and acquisition expense.
−Removed: Other factors were changes related to occupancy and equipment expense, data processing expense, advertising, amortization of intangibles, electronic banking expense, FDIC and state assessment fees and other expenses.
−Removed: Additional details for the six months ended June 30, 2022 on some of the more significant changes are as follows:
+Added: Other factors were changes related to occupancy and equipment expense, data processing expense, advertising, advertising expenses, amortization of intangibles, electronic banking expense, FDIC and state assessment fees, other professional fees, operating supplies and other expenses.
+Added: Additional details for the nine months ended September 30, 2022 on some of the more significant changes are as follows:
• The $47.6 million increase in salaries and employee benefits expense is primarily due to the acquisition of Happy.
−Removed: • The $5.1 million increase in occupancy and equipment expense is primarily due to increases in depreciation on buildings, machinery and equipment, increases in utility expenses and increases in property taxes related to the acquisition of Happy.
−Removed: • The $5.4 million increase in data processing expense is primarily due to increases in telecommunication fees, computer software fees, licensing fee and increases in internet banking and cash management expenses related to the acquisition of Happy.
+Added: • The $10.9 million increase in occupancy and equipment expenses is primarily due to increases in depreciation on buildings, machinery and equipment;
+Added: utility expenses;
+Added: lease expense;
+Added: equipment maintenance and repairs;
+Added: janitorial expenses;
+Added: property taxes and other occupancy expenses related to the acquisition of Happy.
+Added: • The $8.1 million increase in data processing expense is primarily due to increases in telecommunication fees, computer software fees, licensing fees, mobile banking, internet banking and cash management expenses related to the acquisition of Happy.
• The $48.6 million increase in merger and acquisition expense is related to costs associated with the acquisition of Happy.
3 unchanged sentences
• The $2.1 million increase in FDIC and state assessment expense is primarily due to FDIC assessment reductions for 2021 and the acquisition of Happy during the second quarter of 2022.
−Removed: • The $5.1 million increase in other expenses is primarily related to the acquisition of Happy.
−Removed: as well as $2.1 million in TRUPS redemption fees.
−Removed: Income tax expense decreased $21.8 million, or 86.9%, to $3.3 million for the three-month period ended June 30, 2022, from $25.1 million for the same period in 2021.
−Removed: Income tax expense decreased $30.6 million, or 56.8%, to $23.3 million for the six-month period ended June 30, 2022, from $54.0 million for the same period in 2021.
−Removed: The effective income tax rate was 17.09% and 22.38% for the three and six months ended June 30, 2022, compared to 24.07% and 24.02% for the same periods in 2021.
+Added: • The $1.1 million increase in other professional fees is primarily due to the acquisition of Happy.
+Added: • The $1.0 million increase in operating supplies is primarily due to the acquisition of Happy.
+Added: • The $7.6 million increase in other expenses is primarily related to the acquisition of Happy as well as $2.1 million in TRUPS redemption fees.
+Added: Income tax expense increased $10.0 million, or 43.3%, to $33.3 million for the three-month period ended September 30, 2022, from $23.2 million for the same period in 2021.
+Added: Income tax expense decreased $20.6 million, or 26.7%, to $56.6 million for the nine-month period ended September 30, 2022, from $77.2 million for the same period in 2021.
+Added: The effective income tax rate was 23.43% and 22.98% for the three and nine months ended September 30, 2022, compared to 23.63% and 23.91% for the same periods in 2021.
The marginal tax rate was 25.1475% and 25.74% 2022 and 2021, respectively.
−Removed: Financial Condition as of and for the Period Ended June 30, 2022 and December 31, 2021
−Removed: Our total assets as of June 30, 2022 increased $6.20 billion to $24.25 billion from the $18.05 billion reported as of December 31, 2021.
+Added: Financial Condition as of and for the Period Ended September 30, 2022 and December 31, 2021
+Added: Our total assets as of September 30, 2022 increased $5.11 billion to $23.16 billion from $18.05 billion reported as of December 31, 2021.
The increase in total assets is primarily due to the acquisition of $6.69 billion in total assets, net of purchase accounting adjustments, from Happy during the second quarter of 2022.
−Removed: Cash and cash equivalents decreased $833.9 million, for the six months ended June 30, 2022.
−Removed: Our loan portfolio balance increased to $13.92 billion as of June 30, 2022 from $9.84 billion at December 31, 2021.
+Added: Cash and cash equivalents decreased $2.07 billion for the nine months ended September 30, 2022.
+Added: Our loan portfolio balance increased to $13.83 billion as of September 30, 2022 from $9.84 billion at December 31, 2021.
The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $98.4 million in organic loan growth.
−Removed: Total deposits increased $5.32 billion to $19.58 billion as of June 30, 2022 from $14.26 billion as of December 31, 2021.
+Added: Total deposits increased $4.28 billion to $18.54 billion as of September 30, 2022 from $14.26 billion as of December 31, 2021.
The increase in deposits was primarily due to the acquisition of $5.86 billion in deposits, net of purchase accounting adjustments, from Happy in the second quarter of 2022.
−Removed: Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021.
−Removed: The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022.
+Added: Stockholders’ equity increased $694.3 million to $3.46 billion as of September 30, 2022, compared to $2.77 billion as of December 31, 2021.
+Added: The $694.3 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $189.6 million in net income for the nine months ended September 30, 2022, partially offset by the $317.9 million in other comprehensive loss, the $94.8 million of shareholder dividends paid and stock repurchases of $50.9 million in 2022.
Loan Portfolio
Loans Receivable
−Removed: Our loan portfolio averaged $13.84 billion and $10.54 billion during the three months ended June 30, 2022 and 2021, respectively.
−Removed: Our loan portfolio averaged $11.90 billion and $10.78 billion during the six months ended June 30, 2022 and 2021, respectively.
−Removed: Loans receivable were $13.92 billion and $9.84 billion as of June 30, 2022 and December 31, 2021, respectively.
−Removed: From December 31, 2021 to June 30, 2022, the Company experienced an increase of approximately $4.09 billion in loans.
+Added: Our loan portfolio averaged $13.82 billion and $10.04 billion during the three months ended September 30, 2022 and 2021, respectively.
+Added: Our loan portfolio averaged $12.55 billion and $10.53 billion during the nine months ended September 30, 2022 and 2021, respectively.
+Added: Loans receivable were $13.83 billion and $9.84 billion as of September 30, 2022 and December 31, 2021, respectively.
+Added: From December 31, 2021 to September 30, 2022, the Company experienced an increase of approximately $3.99 billion in loans.
The increase in loans was primarily due to the acquisition of $3.65 billion in loans, net of purchase accounting adjustments, from Happy in the second quarter of 2022 and $242.2 million in marine loans from LendingClub Bank during the first quarter of 2022, as well as $98.4 million in organic loan growth.
−Removed: The $192.9 million in organic loan growth included $498.6 million in loan growth for Centennial CFG which was partially offset by $177.9 million in loan decline within the remaining footprint as well as $127.8 million in PPP loan decline.
−Removed: As of June 30, 2022, the Company had $37.2 million of PPP loans.
+Added: The $98.4 million in organic loan growth included $156.6 million in loan growth for Centennial CFG and $96.0 million in loan growth within the remaining footprint, which was partially offset by a $154.2 million in decline in PPP loans.
+Added: As of September 30, 2022, the Company had $10.8 million of PPP loans.
The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans.
1 unchanged sentence
Although these loans are primarily originated within our franchises in Arkansas, Florida, Texas, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Alabama and New York.
−Removed: Loans receivable were approximately $3.03 billion, $3.49 billion, $3.66 billion, $202.5 million, $1.12 billion and $2.42 billion as of June 30, 2022 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.
−Removed: As of June 30, 2022, we had approximately $1.05 billion of construction land development loans which were collateralized by land.
+Added: Loans receivable were approximately $3.06 billion, $3.62 billion, $3.74 billion, $183.5 million, $1.15 billion and $2.08 billion as of September 30, 2022 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.
+Added: As of September 30, 2022, we had approximately $921.3 million of construction land development loans which were collateralized by land.
This consisted of approximately $148.9 million for raw land and approximately $772.4 million for land with commercial and/or residential lots.
−Removed: Table 8 presents our loans receivable balances by category as of June 30, 2022 and December 31, 2021.
+Added: Table 8 presents our loans receivable balances by category as of September 30, 2022 and December 31, 2021.
Loans Receivable
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
(In thousands)
18 unchanged sentences
A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.
−Removed: As of June 30, 2022, commercial real estate loans totaled $8.02 billion, or 57.6%, of loans receivable, as compared to $5.87 billion, or 59.7%, of loans receivable, as of December 31, 2021.
−Removed: Commercial real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $1.97 billion, $2.27 billion, $2.14 billion, $87.9 million, zero and $1.55 billion at June 30, 2022, respectively.
+Added: As of September 30, 2022, commercial real estate loans totaled $7.72 billion, or 55.8%, of loans receivable, as compared to $5.87 billion, or 59.7%, of loans receivable, as of December 31, 2021.
+Added: Commercial real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $1.95 billion, $2.36 billion, $2.21 billion, $80.7 million, zero and $1.12 billion at September 30, 2022, respectively.
Residential Real Estate Loans.
We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas.
−Removed: Approximately 38.6% and 51.6% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of June 30, 2022, with the remaining 9.8% relating to condos and mobile homes.
+Added: Approximately 40.0% and 50.1% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of September 30, 2022, with the remaining 9.9% relating to condos and mobile homes.
Residential real estate loans generally have a loan-to-value ratio of up to 90%.
These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.
−Removed: As of June 30, 2022, residential real estate loans totaled $2.10 billion, or 15.1%, of loans receivable, compared to $1.56 billion, or 15.8%, of loans receivable, as of December 31, 2021.
−Removed: Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $416.6 million, $862.2 million, $562.8 million, $49.3 million, zero and $206.9 million at June 30, 2022, respectively.
+Added: As of September 30, 2022, residential real estate loans totaled $2.23 billion, or 16.1%, of loans receivable, compared to $1.56 billion, or 15.8%, of loans receivable, as of December 31, 2021.
+Added: Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $423.2 million, $930.0 million, $552.1 million, $46.7 million, zero and $278.0 million at September 30, 2022, respectively.
Consumer Loans.
1 unchanged sentence
The performance of consumer loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.
−Removed: As of June 30, 2022, consumer loans totaled $1.11 billion, or 7.9%, of loans receivable, compared to $825.5 million, or 8.4%, of loans receivable, as of December 31, 2021.
−Removed: Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $23.2 million, $7.8 million, $31.3 million, $977,000, $1.04 billion and zero at June 30, 2022, respectively.
+Added: As of September 30, 2022, consumer loans totaled $1.12 billion, or 8.1%, of loans receivable, compared to $825.5 million, or 8.4%, of loans receivable, as of December 31, 2021.
+Added: Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $29.3 million, $8.4 million, $27.9 million, $890,000, $1.05 billion and zero at September 30, 2022, respectively.
Commercial and Industrial Loans.
7 unchanged sentences
We require a first lien position for those loans.
−Removed: As of June 30, 2022, commercial and industrial loans totaled $2.19 billion, or 15.7%, of loans receivable, compared to $1.39 billion, or 14.1%, of loans receivable, as of December 31, 2021.
−Removed: Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $453.9 million, $288.4 million, $653.0 million, $56.4 million, $73.1 million and $662.9 million at June 30, 2022, respectively.
+Added: As of September 30, 2022, commercial and industrial loans totaled $2.27 billion, or 16.4%, of loans receivable, compared to $1.39 billion, or 14.1%, of loans receivable, as of December 31, 2021.
+Added: Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $482.6 million, $264.0 million, $691.8 million, $52.6 million, $97.5 million and $680.4 million at September 30, 2022, respectively.
Non-Performing Assets
11 unchanged sentences
Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.
−Removed: T he Company held approximately $152.3 million and $448,000 in PCD loans, as of June 30, 2022 and December 31, 2021 , respectively.
−Removed: Table 9 sets forth information with respect to our non-performing assets as of June 30, 2022 and December 31, 2021.
+Added: T he Company held approximately $146.0 million and $448,000 in PCD loans, as of September 30, 2022 and December 31, 2021 , respectively.
+Added: Table 9 sets forth information with respect to our non-performing assets as of September 30, 2022 and December 31, 2021.
As of these dates, all non-performing restructured loans are included in non-accrual loans.
Non-performing Assets
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(Dollars in thousands)
16 unchanged sentences
If a loan is determined by management to be uncollectible, the portion of the loan determined to be uncollectible is then charged to the allowance for credit losses.
−Removed: Total non-performing loans were $60.6 million and $50.2 million as of June 30, 2022 and December 31, 2021, respectively.
−Removed: Non-performing loans at June 30, 2022 were $15.0 million, $33.3 million, $5.5 million, $813,000, $1.3 million and $4.7 million in the Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets, respectively.
−Removed: The $4.7 million balance of non-accrual loans for our Centennial CFG market consists of one loan that is assessed for credit risk by the Federal Reserve under the Shared National Credit Program.
−Removed: The decision to place this loan on non-accrual status was made by the Federal Reserve and not the Company.
−Removed: The loan that makes up the total balance is still current on both principal and interest.
−Removed: However, all interest payments are currently being applied to the principal balance.
−Removed: Because the Federal Reserve required us to place this loan on non-accrual status, we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.
+Added: Total non-performing loans were $61.7 million and $50.2 million as of September 30, 2022 and December 31, 2021, respectively.
+Added: Non-performing loans at September 30, 2022 were $10.2 million, $24.8 million, $13.7 million, $204,000, $1.4 million and $11.4 million in the Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets, respectively.
+Added: The $11.4 million balance of non-accrual loans for our Centennial CFG market consists of two loans that are assessed for credit risk by the Federal Reserve under the Shared National Credit Program.
+Added: Due to the condition of the two loans, partial charge-offs for a total of $2.2 million were taken on these loans during the third quarter of 2022.
+Added: The loans are not current on either principal or interest, and we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve.
+Added: Any interest payments that are received will be applied to the principal balance.
Troubled debt restructurings (“TDRs”) generally occur when a borrower is experiencing, or is expected to experience, financial difficulties in the near term.
3 unchanged sentences
For our TDRs that accrue interest at the time the loan is restructured, it would be a rare exception to have charged-off any portion of the loan.
−Removed: As of June 30, 2022, we had $5.9 million of restructured loans that are in compliance with the modified terms and are not reported as past due or non-accrual in Table 9.
+Added: As of September 30, 2022, we had $6.2 million of restructured loans that are in compliance with the modified terms and are not reported as past due or non-accrual in Table 9.
Our Florida market contains $3.5 million and our Arkansas market contains $2.7 million of these restructured loans.
6 unchanged sentences
In addition, it is common for the Bank to seek additional collateral or guarantor support when modifying a loan.
−Removed: At June 30, 2022 and December 31, 2021, the amount of TDRs was $6.6 million and $7.5 million, respectively.
−Removed: As of June 30, 2022 and December 31, 2021, 88.9% and 85.7%, respectively, of all restructured loans were performing to the terms of the restructure.
−Removed: Total foreclosed assets held for sale were $373,000 as of June 30, 2022, compared to $1.6 million as of December 31, 2021 for a decrease of $1.3 million.
−Removed: The foreclosed assets held for sale as of June 30, 2022 are comprised of $8,000 of assets located in Arkansas, $260,000 located in Florida, $105,000 located in Texas and zero from Alabama, SPF and Centennial CFG.
−Removed: Table 10 shows the summary of foreclosed assets held for sale as of June 30, 2022 and December 31, 2021.
+Added: At September 30, 2022 and December 31, 2021, the amount of TDRs was $7.6 million and $7.5 million, respectively.
+Added: As of September 30, 2022 and December 31, 2021, 81.1% and 85.7%, respectively, of all restructured loans were performing to the terms of the restructure.
+Added: Total foreclosed assets held for sale were $365,000 as of September 30, 2022, compared to $1.6 million as of December 31, 2021 for a decrease of $1.3 million.
+Added: The foreclosed assets held for sale as of September 30, 2022 are comprised of zero assets located in Arkansas, $260,000 located in Florida, $105,000 located in Texas and zero from Alabama, SPF and Centennial CFG.
+Added: Table 10 shows the summary of foreclosed assets held for sale as of September 30, 2022 and December 31, 2021.
Foreclosed Assets Held For Sale
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(In thousands)
4 unchanged sentences
Residential 1-4 family 269 260
−Removed: Multifamily residential — —
Total foreclosed assets held for sale $ 365 $ 1,630
1 unchanged sentence
Impaired loans include non-performing loans (loans past due 90 days or more and non-accrual loans), criticized and/or classified loans with a specific allocation, loans categorized as TDRs and certain other loans identified by management that are still performing (loans included in multiple categories are only included once).
−Removed: As of June 30, 2022 and December 31, 2021, impaired loans were $385.1 million and $331.5 million, respectively.
−Removed: The amortized cost balance for loans with a specific allocation increased from $284.0 million to $323.1 million, and the specific allocation for impaired loans increased by approximately $6.6 million for the period ended June 30, 2022 compared to the period ended December 31, 2021.
+Added: As of September 30, 2022 and December 31, 2021, impaired loans were $229.3 million and $331.5 million, respectively.
+Added: The amortized cost balance for loans with a specific allocation decreased from $284.0 million to $169.7 million, and the specific allocation for impaired loans decreased by approximately $21.9 million for the period ended September 30, 2022 compared to the period ended December 31, 2021.
The Company is continuing to monitor these impaired loans and will adjust the discount as necessary.
−Removed: As of June 30, 2022, our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets accounted for approximately $176.3 million, $145.0 million, $57.1 million, $813,000, $1.3 million and $4.7 million of the impaired loans, respectively.
+Added: As of September 30, 2022, our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets accounted for approximately $24.2 million, $132.3 million, $59.8 million, $204,000, $1.4 million and $11.4 million of the impaired loans, respectively.
Past Due and Non-Accrual Loans
−Removed: Table 11 shows the summary of non-accrual loans as of June 30, 2022 and December 31, 2021:
+Added: Table 11 shows the summary of non-accrual loans as of September 30, 2022 and December 31, 2021:
Total Non-Accrual Loans
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(In thousands)
11 unchanged sentences
Total non-accrual loans $ 56,796 $ 47,158
−Removed: If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $672,000 and $795,000, respectively, would have been recorded for the three-month periods ended June 30, 2022 and 2021.
−Removed: If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $1.3 million and $1.6 million, respectively, would have been recorded for the six month periods ended June 30, 2022 and 2021.
−Removed: The interest income recognized on non-accrual loans for the three and six months ended June 30, 2022 and 2021 was considered immaterial.
−Removed: Table 12 shows the summary of accruing past due loans 90 days or more as of June 30, 2022 and December 31, 2021:
+Added: If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $1.1 million and $662,000, respectively, would have been recorded for the three-month periods ended September 30, 2022 and 2021.
+Added: If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $3.2 million and $2.0 million, respectively, would have been recorded for the nine month periods ended September 30, 2022 and 2021.
+Added: The interest income recognized on non-accrual loans for the three and nine months ended September 30, 2022 and 2021 was considered immaterial.
+Added: Table 12 shows the summary of accruing past due loans 90 days or more as of September 30, 2022 and December 31, 2021:
Loans Accruing Past Due 90 Days or More
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(In thousands)
2 unchanged sentences
Construction/land development 34 —
−Removed: Agricultural 711 —
Residential real estate loans
Residential 1-4 family 1,445 701
−Removed: Multifamily residential — —
Total real estate 1,769 2,926
2 unchanged sentences
Total loans accruing past due 90 days or more $ 4,898 $ 3,035
−Removed: Our ratio of total loans accruing past due 90 days or more and non-accrual loans to total loans was 0.44% and 0.51% at June 30, 2022 and December 31, 2021, respectively.
+Added: Our ratio of total loans accruing past due 90 days or more and non-accrual loans to total loans was 0.45% and 0.51% at September 30, 2022 and December 31, 2021, respectively.
Allowance for Credit Losses
19 unchanged sentences
Historical credit loss experience provides the basis for the estimation of expected credit losses.
−Removed: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and national retail sales index.
+Added: Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, housing price indices and rental vacancy rate index .
The combination of adjustments for credit expectations (default and loss) and time expectations prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level.
77 unchanged sentences
If a partial charge-off occurs, the quarterly impairment analysis will determine if the loan is still impaired, and thus continues to require a specific allocation.
−Removed: The Company had $385.1 million and $331.5 million in collateral-dependent impaired loans for the periods ended June 30, 2022 and December 31, 2021 , respectively.
+Added: The Company had $229.3 million and $331.5 million in collateral-dependent impaired loans for the periods ended September 30, 2022 and December 31, 2021 , respectively.
Loans Collectively Evaluated for Impairment .
−Removed: Loans receivable collectively evaluated for impairment increased by approximately $4.04 billion from $9.54 billion at December 31, 2021 to $13.57 billion at June 30, 2022.
−Removed: The percentage of the allowance for credit losses allocated to loans receivable collectively evaluated for impairment to the total loans collectively evaluated for impairment was 1.74% and 1.94% at June 30, 2022 and December 31, 2021, respectively .
+Added: Loans receivable collectively evaluated for impairment increased by approximately $4.10 billion from $9.54 billion at December 31, 2021 to $13.64 billion at September 30, 2022.
+Added: The percentage of the allowance for credit losses allocated to loans receivable collectively evaluated for impairment to the total loans collectively evaluated for impairment was 1.90% and 1.94% at September 30, 2022 and December 31, 2021, respectively.
Charge-offs and Recoveries.
−Removed: Total charge-offs increased to $3.3 million for the three months ended June 30, 2022, compared to $3.0 million for the same period in 2021.
−Removed: Total charge-offs decreased to $5.6 million for the six months ended June 30, 2022, compared to $6.1 million for the same period in 2021.
−Removed: Total recoveries were $778,000 and $542,000 for the three months ended June 30, 2022 and 2021, respectively.
−Removed: Total recoveries were $1.1 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively.
−Removed: For the three months ended June 30, 2022, net charge-offs were $262,000 for Arkansas, $1.5 million for Florida, $724,000 for Texas, $35,000 for Alabama and zero for Centennial CFG, partially offset by net recoveries of $63,000 for SPF.
+Added: Total charge-offs increased to $6.3 million for the three months ended September 30, 2022, compared to $2.5 million for the same period in 2021.
+Added: Total charge-offs increased to $11.9 million for the nine months ended September 30, 2022, compared to $8.5 million for the same period in 2021.
+Added: Total recoveries were $1.2 million and $691,000 for the three months ended September 30, 2022 and 2021, respectively.
+Added: Total recoveries were $2.4 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively.
+Added: For the three months ended September 30, 2022, net charge-offs were $295,000 for Arkansas, $1.6 million for Florida, $1.0 million for Texas, $11,000 for Alabama and $2.2 million for Centennial CFG, partially offset by net recoveries of $3,000 for SPF.
These equal a net charge-off position of $5.1 million.
−Removed: For the six months ended June 30, 2022, net charge-offs were $530,000 for Arkansas, $2.7 million for Florida, $724,000 for Texas, $36,000 for Alabama, $395,000 for SPF and zero for Centennial CFG.
+Added: For the nine months ended September 30, 2022, net charge-offs were $825,000 for Arkansas, $4.3 million for Florida, $1.7 million for Texas, $47,000 for Alabama, $392,000 for SPF and $2.2 million for Centennial CFG.
These equal a net charge-off position of $9.5 million.
2 unchanged sentences
This is usually established over a period of 6-12 months of timely payment performance.
−Removed: Table 13 shows the allowance for credit losses, charge-offs and recoveries as of and for the three and six months ended June 30, 2022 and 2021.
+Added: Table 13 shows the allowance for credit losses, charge-offs and recoveries as of and for the three and nine months ended September 30, 2022 and 2021.
Analysis of Allowance for Credit Losses
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
(Dollars in thousands)
−Removed: Balance, beginning of year $ 234,768 $ 242,932 $ 236,714 $ 245,473
+Added: Balance, beginning of period $ 294,267 $ 240,451 $ 236,714 $ 245,473
Allowance for credit losses on PCD loans - Happy acquisition — — 16,816 —
6 unchanged sentences
Residential 1-4 family 48 220 337 543
−Removed: Multifamily residential — — — —
Total real estate 59 229 348 1,189
1 unchanged sentence
Commercial and industrial 4,536 1,682 5,952 5,892
−Removed: Agricultural — — — —
Other 1,671 537 3,304 1,315
4 unchanged sentences
Construction/land development 8 8 325 47
−Removed: Agricultural — — — —
Residential real estate loans:
Residential 1-4 family 45 388 94 554
−Removed: Multifamily residential — — — —
Total real estate 831 440 1,275 713
1 unchanged sentence
Commercial and industrial 189 80 519 382
−Removed: Agricultural — — — —
Other 187 152 507 593
2 unchanged sentences
Provision for credit loss - acquired loans — — 45,170 —
−Removed: Balance, June 30 $ 294,267 $ 240,451 $ 294,267 $ 240,451
+Added: Balance, September 30 $ 289,203 $ 238,673 $ 289,203 $ 238,673
Net charge-offs to average loans receivable 0.15 % 0.07 % 0.10 % 0.09 %
1 unchanged sentence
Allowance for credit losses to net charge-offs 1,439.47 3,383.50 2,277.65 2,625.21
−Removed: Table 14 presents the allocation of allowance for credit losses as of June 30, 2022 and December 31, 2021.
+Added: Table 14 presents the allocation of allowance for credit losses as of September 30, 2022 and December 31, 2021.
Allocation of Allowance for Credit Losses
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(Dollars in thousands)
18 unchanged sentences
If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities.
−Removed: The estimated effective duration of our securities portfolio was 5.2 years as of June 30, 2022.
+Added: The estimated effective duration of our securities portfolio was 5.2 years as of September 30, 2022.
Securities held-to-maturity, which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts.
Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security.
−Removed: As of June 30, 2022, we had $1.37 billion of held-to-maturity securities.
−Removed: Of the $1.37 billion of held-to-maturity securities as of June 30, 2022, $1.09 billion, or 79.7%, is invested in obligations of state and political subdivisions and the other $277.7 million, or 20.3%, is invested in U.S.
−Removed: Treasury securities.
+Added: As of September 30, 2022, we had $1.25 billion of held-to-maturity securities.
+Added: As of September 30, 2022, $1.11 billion, or 88.7%, was invested in obligations of state and political subdivisions, $43.0 million, or 3.4%, were invested in obligations of U.S.
+Added: Government-sponsored enterprises and $98.5 million, or 7.9%, were invested in mortgage-backed securities.
+Added: government-sponsored enterprises and mortgage-backed securities are guaranteed by the U.S.
Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity as other comprehensive (loss) income.
Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale.
−Removed: Available-for-sale securities were $3.79 billion and $3.12 billion as June 30, 2022 and December 31, 2021, respectively.
−Removed: As of June 30, 2022, $1.98 billion, or 52.2%, of our available-for-sale securities were invested in mortgage-backed securities, compared to $1.54 billion, or 49.3%, of our available-for-sale securities as of December 31, 2021.
−Removed: To reduce our income tax burden, $934.5 million, or 24.6%, of our available-for-sale securities portfolio as of June 30, 2022, were primarily invested in tax-exempt obligations of state and political subdivisions, compared to $997.0 million, or 32.0%, of our available-for-sale securities as of December 31, 2021.
+Added: Available-for-sale securities were $4.09 billion and $3.12 billion as September 30, 2022 and December 31, 2021, respectively.
+Added: As of September 30, 2022, $1.94 billion, or 47.5%, of our available-for-sale securities were invested in mortgage-backed securities, compared to $1.54 billion, or 49.3%, of our available-for-sale securities as of December 31, 2021.
+Added: To reduce our income tax burden, $900.2 million, or 22.0%, of our available-for-sale securities portfolio as of September 30, 2022, were primarily invested in tax-exempt obligations of state and political subdivisions, compared to $997.0 million, or 32.0%, of our available-for-sale securities as of December 31, 2021.
We had $682.0 million, or 16.7%, invested in obligations of U.S.
−Removed: Government-sponsored enterprises as of June 30, 2022, compared to $433.0 million, or 13.9%, of our available-for-sale securities as of December 31, 2021.
−Removed: Also, we had approximately $427.3 million, or 11.3%, invested in other securities as of June 30, 2022, compared to $151.9 million, or 4.9% of our available-for-sale securities as of December 31, 2021.
+Added: Government-sponsored enterprises as of September 30, 2022, compared to $433.0 million, or 13.9%, of our available-for-sale securities as of December 31, 2021.
+Added: Also, we had approximately $564.3 million, or 13.8%, invested in other securities as of September 30, 2022, compared to $151.9 million, or 4.9% of our available-for-sale securities as of December 31, 2021.
The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments .
12 unchanged sentences
The remainder of investments classified as held-to-maturity are U.S.
−Removed: Treasury securities.
−Removed: Due to the inherent low risk in U.S.
−Removed: Treasury securities, no provision for credit loss was established on that portion of the portfolio.
−Removed: At June 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio resulting from the Happy acquisition was considered adequate.
+Added: government-sponsored enterprises and mortgage-backed securities all of which are guaranteed by the U.S.
+Added: Due to the inherent low risk in these U.S.
+Added: government guaranteed securities, no provision for credit loss was established on this portion of the portfolio.
+Added: At September 30, 2022, the Company determined that the allowance for credit losses of $842,000, resulting from economic uncertainty, was adequate for the available-for-sale investment portfolio, and the allowance for credit losses for the HTM portfolio was considered adequate.
No additional provision for credit losses was considered necessary for the portfolio.
See Note 3 to the Condensed Notes to Consolidated Financial Statements for the carrying value and fair value of investment securities.
−Removed: Our deposits averaged $19.94 billion and $17.17 billion for the three and six months ended June 30, 2022, respectively.
−Removed: Our deposits averaged $13.77 billion and $13.40 billion for the three and six months ended June 30, 2021, respectively.
−Removed: Total deposits were $19.58 billion as of June 30, 2022, and $14.26 billion as of December 31, 2021.
+Added: Our deposits averaged $19.09 billion and $17.82 billion for the three and nine months ended September 30, 2022, respectively.
+Added: Our deposits averaged $13.95 billion and $13.59 billion for the three and nine months ended September 30, 2021, respectively.
+Added: Total deposits were $18.54 billion as of September 30, 2022, and $14.26 billion as of December 31, 2021.
Deposits are our primary source of funds.
10 unchanged sentences
In that event we would be required to obtain alternate sources for funding.
−Removed: Table 15 reflects the classification of the brokered deposits as of June 30, 2022 and December 31, 2021.
+Added: Table 15 reflects the classification of the brokered deposits as of September 30, 2022 and December 31, 2021.
Brokered Deposits
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
(In thousands)
−Removed: Time Deposits $ — $ —
Insured Cash Sweep and Other Transaction Accounts 546,643 625,704
10 unchanged sentences
On June 15, 2022, the target rate was increased to 1.50% to 1.75%.
−Removed: Presently, the Federal Reserve has indicated they are anticipating multiple rate increases for 2022.
−Removed: Table 16 reflects the classification of the average deposits and the average rate paid on each deposit category, which are in excess of 10 percent of average total deposits, for the three and six months ended June 30, 2022 and 2021.
+Added: On July 27, 2022, the target rate was increased to 2.25% to 2.50%.
+Added: On September 21, 2022, the target rate was increased to 3.00% to 3.25%.
+Added: Presently, the Federal Reserve has indicated they are anticipating further rate increases.
+Added: Table 16 reflects the classification of the average deposits and the average rate paid on each deposit category, which are in excess of 10 percent of average total deposits, for the three and nine months ended September 30, 2022 and 2021.
Average Deposit Balances and Rates
−Removed: Three Months Ended June 30,
+Added: Three Months Ended September 30,
Amount Average
9 unchanged sentences
Total $ 19,090,949 0.49 % $ 13,949,331 0.16 %
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Amount Average
13 unchanged sentences
Interest incurred on repurchase agreements is reported as interest expense.
−Removed: Securities sold under agreements to repurchase decreased $22.3 million, or 15.8%, from $140.9 million as of December 31, 2021 to $118.6 million as of June 30, 2022.
+Added: Securities sold under agreements to repurchase decreased $19.3 million, or 13.7%, from $140.9 million as of December 31, 2021 to $121.6 million as of September 30, 2022.
FHLB and Other Borrowed Funds
−Removed: The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $400.0 million at both June 30, 2022 and December 31, 2021.
−Removed: The Company had no other borrowed funds as of June 30, 2022 or December 31, 2021.
−Removed: At June 30, 2022 and December 31, 2021, all of the outstanding balances were classified as long-term advances.
+Added: The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $400.0 million at both September 30, 2022 and December 31, 2021 .
+Added: The Company had no other borrowed funds as of September 30, 2022 or December 31, 2021.
+Added: At September 30, 2022 all of the outstanding balances were classified as short-term advances as the FHLB has provided notice of their intention to call all of the Company's FHLB borrowed funds within a year due to the low interest rates on the advances.
+Added: At December 31, 2021, all of the outstanding balances were classified as long-term advances.
The FHLB advances mature in 2033 with fixed interest rates ranging from 1.76% to 2.26%.
−Removed: Expected maturities could differ from contractual maturities because FHLB may have the right to call or the Company may have the right to prepay certain obligations.
+Added: As noted above, expected maturities could differ from contractual maturities because FHLB may have the right to call or the Company may have the right to prepay certain obligations.
Subordinated Debentures
−Removed: Subordinated debentures, which consist of subordinated debt securities and guaranteed payments on trust preferred securities, were $458.5 million and $371.1 million as of June 30, 2022 and December 31, 2021, respectively.
−Removed: The Company holds trust preferred securities with a face amount of $17.6 million which are currently callable without penalty based on the terms of the specific agreements.
−Removed: The trust preferred securities are tax-advantaged issues that previously qualified for Tier 1 capital treatment subject to certain limitations.
−Removed: However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital.
−Removed: Distributions on these securities are included in interest expense.
−Removed: Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust.
−Removed: The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust.
−Removed: The Company wholly owns the common securities of each trust.
−Removed: Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures.
−Removed: The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.
−Removed: The Company has received approval from the Federal Reserve to redeem the trust preferred securities, and is in the process of redeeming all of its trust preferred securities.
+Added: Subordinated debentures, which consist of subordinated debt securities and guaranteed payments on trust preferred securities, were $440.6 million and $371.1 million as of September 30, 2022 and December 31, 2021, respectively.
On April 1, 2022, the Company acquired $23.2 million in trust preferred securities from Happy which were currently callable without penalty based on the terms of the specific agreements.
−Removed: During the quarter, $10.7 million of these trust preferred securities were paid off without penalty.
−Removed: As of June 30, 2022, the Company held a face amount of $12.5 million in trust preferred securities acquired from Happy.
−Removed: During the second quarter, the Company chose to redeem an additional $68.1 million in trust preferred securities held prior to the acquisition of Happy.
−Removed: As of June 30, 2022, the Company's remaining balance of trust preferred securities which were held prior to the acquisition of Happy was $5.1 million.
+Added: During the second and third quarters of 2022, the Company redeemed, without penalty, the $23.2 million of the trust preferred securities acquired from Happy.
+Added: In addition, during the second and third quarters, the Company also redeemed, without penalty, the $73.3 million of trust preferred securities held prior to the Happy acquisition.
+Added: As a result, the Company no longer holds any trust preferred securities.
On April 1, 2022, the Company acquired $140.0 million of subordinated notes from Happy.
11 unchanged sentences
On April 3, 2017, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “2027 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $297.0 million.
−Removed: The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027.
−Removed: From and including the date of issuance to, but excluding April 15, 2022, the 2027 Notes bear interest at an initial rate of 5.625% per annum.
−Removed: From and including April 15, 2022 to, but excluding the maturity date or earlier redemption, the 2027 Notes bear interest at a floating rate equal to three-month LIBOR as calculated on each applicable date of determination plus a spread of 3.575%;
−Removed: provided, however, that in the event three-month LIBOR is less than zero, then three-month LIBOR shall be deemed to be zero.
+Added: The 2027 Notes were unsecured, subordinated debt obligations and would have matured on April 15, 2027.
+Added: From and including the date of issuance to, but excluding April 15, 2022, the 2027 Notes bore interest at an initial rate of 5.625% per annum.
+Added: From and including April 15, 2022 to, but excluding the maturity date or earlier redemption, the 2027 Notes were to bear interest at a floating rate equal to three-month LIBOR as calculated on each applicable date of determination plus a spread of 3.575%;
+Added: provided, however, that in the event three-month LIBOR was less than zero, then three-month LIBOR would have been deemed to be zero.
The Company, beginning with the interest payment date of April 15, 2022, and on any interest payment date thereafter, was permitted to redeem the 2027 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption.
3 unchanged sentences
Stockholders’ Equity
−Removed: Stockholders’ equity increased $732.8 million to $3.50 billion as of June 30, 2022, compared to $2.77 billion as of December 31, 2021.
−Removed: The $732.8 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $80.9 million in net income for the six months ended June 30, 2022, partially offset by the $226.4 million in other comprehensive loss, the $61.0 million of shareholder dividends paid and stock repurchases of $26.6 million in 2022.
−Removed: As of June 30, 2022 and December 31, 2021, our equity to asset ratio was 14.43% and 15.32%, respectively.
−Removed: Book value per share was $17.04 as of June 30, 2022, compared to $16.90 as of December 31, 2021, a 3.5% annualized increase.
+Added: Stockholders’ equity increased $694.3 million to $3.46 billion as of September 30, 2022, compared to $2.77 billion as of December 31, 2021.
+Added: The $694.3 million increase in stockholders’ equity is primarily associated with the $961.3 million in common stock issued to Happy shareholders for the acquisition of Happy on April 1, 2022 and the $189.6 million in net income for the nine months ended September 30, 2022, partially offset by the $317.9 million in other comprehensive loss, the $94.8 million of shareholder dividends paid and stock repurchases of $50.9 million in 2022.
+Added: As of September 30, 2022 and December 31, 2021, our equity to asset ratio was 14.94% and 15.32%, respectively.
+Added: Book value per share was $16.94 as of September 30, 2022, compared to $16.90 as of December 31, 2021, a 0.3% annualized increase.
Common Stock Cash Dividends.
−Removed: We declared cash dividends on our common stock of $0.165 and $0.14 per share for the three months ended June 30, 2022 and 2021, respectively.
−Removed: The common stock dividend payout ratio for the three months ended June 30, 2022 and 2021 was 212.4% and 29.2%, respectively.
−Removed: The common stock dividend payout ratio for the six months ended June 30, 2022 and 2021 was 75.4% and 27.1%, respectively.
−Removed: On July 22, 2022, the Board of Directors declared a regular $0.165 per share quarterly cash dividend payable September 7, 2022, to shareholders of record August 17, 2022.
+Added: We declared cash dividends on our common stock of $0.165 and $0.14 per share for the three months ended September 30, 2022 and 2021, respectively.
+Added: The common stock dividend payout ratio for the three months ended September 30, 2022 and 2021 was 31.1% and 30.6%, respectively.
+Added: The common stock dividend payout ratio for the nine months ended September 30, 2022 and 2021 was 50.0% and 28.2%, respectively.
+Added: On October 21, 2022, the Board of Directors declared a regular $0.165 per share quarterly cash dividend payable December 7, 2022, to shareholders of record November 16, 2022.
Stock Repurchase Program.
On January 22, 2021, the Company’s Board of Directors authorized the repurchase of up to an additional 20,000,000 shares of its common stock under the previously approved stock repurchase program.
−Removed: We repurchased a total of 1,212,732 shares with a weighted-average stock price of $21.89 per share during the first six months of 2022.
−Removed: The remaining balance available for repurchase was 20,877,933 shares at June 30, 2022.
+Added: We repurchased a total of 2,258,531 shares with a weighted-average stock price of $22.50 per share during the first nine months of 2022.
+Added: The remaining balance available for repurchase was 19,832,134 shares at September 30, 2022.
Liquidity and Capital Adequacy Requirements
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The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and increased by 0.625% on each subsequent January 1, until it reached 2.5% on January 1, 2019 when the phase-in period ended, and the full capital conservation buffer requirement became effective.
−Removed: Basel III permanently grandfathers trust preferred securities and other non-qualifying capital instruments that were issued and outstanding as of May 19, 2010 in the Tier 1 capital of bank holding companies with total consolidated assets of less than $15 billion as of December 31, 2009.
−Removed: The rule phases out of Tier 1 capital these non-qualifying capital instruments issued before May 19, 2010 by all other bank holding companies.
−Removed: However, now that the Company has exceeded $15 billion in assets and has completed the acquisition of Happy Bancshares, the Tier 1 treatment of the Company’s outstanding trust preferred securities has been eliminated, and these securities are now treated as Tier 2 capital.
−Removed: Basel III also amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories.
−Removed: In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio .
+Added: Basel III amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories.
+Added: In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization is required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio .
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets.
−Removed: Management believes that, as of June 30, 2022 and December 31, 2021, we met all regulatory capital adequacy requirements to which we were subject.
+Added: Management believes that, as of September 30, 2022 and December 31, 2021, we met all regulatory capital adequacy requirements to which we were subject.
On January 18, 2022, the Company completed an underwritten public offering of the 2032 Notes in aggregate principal amount of $300.0 million.
9 unchanged sentences
On April 3, 2017, the Company completed an underwritten public offering of the 2027 Notes in aggregate principal amount of $300.0 million.
−Removed: The 2027 Notes are unsecured, subordinated debt obligations and mature on April 15, 2027.
+Added: The 2027 Notes were unsecured, subordinated debt obligations and would have matured on April 15, 2027.
On April 15, 2022, the Company completed the payoff of the 2027 Notes in aggregate principal amount of $300.0 million.
5 unchanged sentences
The Company has elected to adopt the interim final rule, which is reflected in the risk-based capital ratios presented below.
−Removed: Table 17 presents our risk-based capital ratios on a consolidated basis as of June 30, 2022 and December 31, 2021.
+Added: Table 17 presents our risk-based capital ratios on a consolidated basis as of September 30, 2022 and December 31, 2021.
Risk-Based Capital
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(Dollars in thousands)
3 unchanged sentences
Goodwill and core deposit intangibles, net (1,454,837) (997,605)
−Removed: Unrealized (gain) loss on available-for-sale securities 215,905 (10,462)
+Added: Unrealized loss on available-for-sale securities 307,455 (10,462)
Total common equity Tier 1 capital 2,337,002 1,812,797
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Earnings, As Adjusted
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
11 unchanged sentences
Tax-effect of adjustments (1)
+Added: 393 (587) 25,569 (6,412)
Total adjustments after-tax (B) 1,170 (695) 78,855 (17,501)
8 unchanged sentences
(1) Blended statutory rate of 25.1475% for 2022 and 25.74% for 2021
−Removed: We had $1.46 billion, $998.1 million, and $1.00 billion total goodwill, core deposit intangibles and other intangible assets as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.
+Added: We had $1.46 billion, $998.1 million, and $999.5 million in total goodwill, core deposit intangibles and other intangible assets as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.
Because of our level of intangible assets and related amortization expenses, management believes tangible book value per share, return on average assets excluding intangible amortization, return on average tangible equity, return on average tangible equity excluding intangible amortization, and tangible equity to tangible assets are useful in evaluating our company.
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Tangible Book Value Per Share
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(In thousands, except per share data)
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(C) Goodwill 1,394,353 973,025
−Removed: (D) Core deposit and other intangibles 63,410 25,045
+Added: (D) Core deposit intangibles 60,932 25,045
Return on Average Assets
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
2 unchanged sentences
A/D 1.81 % 1.68 % 1.13 % 1.90 %
−Removed: Return on average assets excluding intangible amortization:
−Removed: (A+B)/(D-E) 0.31 1.95 0.83 2.16
Return on average assets, as adjusted:
(A+C)/D 1.83 1.67 1.61 1.76
+Added: Return on average assets excluding intangible amortization:
+Added: B/(D-E) 1.97 1.81 1.23 2.04
(A) Net income $ 108,705 $ 74,992 $ 189,575 $ 245,664
4 unchanged sentences
(E) Average goodwill, core deposits and other intangible assets
+Added: 1,459,034 1,000,175 1,294,971 1,001,585
Return on Average Equity
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
4 unchanged sentences
(A+C)/D 12.39 10.87 10.91 11.44
−Removed: Return on average tangible equity excluding intangible amortization:
+Added: Return on average tangible common equity:
+Added: A/(D-E) 20.93 17.39 12.71 19.74
+Added: Return on average tangible equity excluding intangible
+Added: amortization:
B/(D-E) 21.29 17.64 13.03 19.99
5 unchanged sentences
(D) Average equity 3,519,296 2,710,953 3,289,170 2,665,886
−Removed: (E) Average goodwill, core deposits and other intangible assets 1,423,466 1,001,598 1,211,580 1,002,301
+Added: (E) Average goodwill, core deposits and other intangible
+Added: assets 1,459,034 1,000,175 1,294,971 1,001,585
Tangible Equity to Tangible Assets
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(Dollars in thousands)
6 unchanged sentences
(C) Goodwill 1,394,353 973,025
−Removed: (D) Core deposit and other intangibles 63,410 25,045
+Added: (D) Core deposit intangibles 60,932 25,045
The efficiency ratio is a standard measure used in the banking industry and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income.
2 unchanged sentences
Efficiency Ratio, As Adjusted
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
15 unchanged sentences
Merger and acquisition expenses — 1,006 49,594 1,006
+Added: TRUPS redemption fees — — 2,081 —
Total non-core non-interest expense (G) $ — $ 1,006 $ 51,675 $ 1,006
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.